Consider the following list of operating segments and segment assets for the current reporting period relating to Arwen Ltd,and answer the question below. What is the minimum asset amount rounded to the nearest $1,000)that the Fast Food segment should have for that segment to be considered a reportable segment according to AASB 8?
A) $83,000
B) $106,000
C) $174,000
D) $184,000
E) None of the given answers.

Question

Consider the following list of operating segments and segment assets for the current reporting period relating to Arwen Ltd,and answer the question below.  What is the minimum asset amount rounded to the nearest $1,000)that the Fast Food segment should have for that segment to be considered a reportable segment according to AASB 8?
A) $83,000 
B) $106,000 
C) $174,000 
D) $184,000 
E) None of the given answers.

Quizplus · Accepted Answer

According to AASB 8, a segment is reportable if its assets exceed 10% of the combined assets of all operating segments. In this case, the combined assets of all operating segments are $1,840,000 ($580,000 + $460,000 + $430,000 + $370,000). Therefore, the minimum asset amount for the Fast Food segment to be considered a reportable segment is $184,000 ($1,840,000 x 10%).

Consider the Following List of Operating Segments and Segment Assets