The following information relates to Aragorn Ltd and its Mordor segment. In which years would the Mordor segment be classified as a reportable segment according to AASB 8?
A) 2001, 2003 and 2005.
B) 2001, 2002, 2003 and 2005.
C) 2002, 2003, 2004 and 2005.
D) 2003 and 2005
E) None of the given answers

Question

The following information relates to Aragorn Ltd and its Mordor segment.  In which years would the Mordor segment be classified as a reportable segment according to AASB 8?
A) 2001, 2003 and 2005. 
B) 2001, 2002, 2003 and 2005. 
C) 2002, 2003, 2004 and 2005. 
D) 2003 and 2005 
E) None of the given answers

Quizplus · Accepted Answer

According to AASB 8, a segment should be considered reportable if it meets either the quantitative or qualitative disclosure criteria. The quantitative criteria include having revenue, assets, or liabilities greater than 10% of the company's total. In this case, the Mordor segment meets the quantitative criteria in all four years (2001-2003 and 2005) as its revenue is greater than 10% of the company's total revenue. Therefore, it would be classified as a reportable segment in those years.

The Following Information Relates to Aragorn Ltd and Its Mordor