REFERENCE: Ref.08_07
Elektronix,Inc.has three operating segments with the following information: In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000.
-Which of the following is a criterion for determining whether an operating segment is separately reportable according to SFAS 131?

Question

REFERENCE: Ref.08_07
Elektronix,Inc.has three operating segments with the following information:  In addition,revenues generated at corporate headquarters are $300,000,and common assets are $16,000,000.
-Which of the following is a criterion for determining whether an operating segment is separately reportable according to SFAS 131?

Quizplus · Accepted Answer

According to SFAS 131, an operating segment is separately reportable if it meets any of the following three criteria: (1) its revenue is 10 percent or more of the combined revenue of all operating segments, (2) its profit or loss is 10 percent or more of the greater of the combined profit of all operating segments that reported a profit or the combined loss of all operating segments that reported a loss, or (3) its assets are 10 percent or more of the combined assets of all operating segments. Therefore, the criterion for determining whether an operating segment is separately reportable is that its assets are 10 percent or more of the combined segment assets, which is option A.

REFERENCE: Ref.08_07 Elektronix,Inc.has Three Operating Segments with the Following Information: in