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ASSIGNMENT 02
REG No : 2015/BS/53
Question 1
Quantitative Thresholds
An entity shall report separately information about an operating segment that meets any of
the following quantitative thresholds:
a) Its reported revenue, including both sales to external customers and intersegment sales
or transfers, is 10 per cent or more of the combined revenue, internal and external, of
all operating segments.
b) The absolute amount of its reported profit or loss is 10 per cent or more of the greater,
in absolute amount, of
i) The combined reported profit of all operating segments that did not report a loss
and
ii) The combined reported loss of all operating segments that reported a loss.
c) Its assets are 10 per cent or more of the combined assets of all operating segments.
Operating segments that do not meet any of the quantitative thresholds may be considered
reportable, and separately disclosed, if management believes that information about the
segment would be useful to users of the financial statements.
If the total external revenue reported by operating segments constitutes less than 75% of
the total revenue, additional operating segments shall be identified as reportable segments
until at least 75% of the entity’s revenue is included in reportable segments.
Question 2
(I)
Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity.
(a) cash
(b) an equity instrument of another entity
(c) a contractual right
i. to receive cash or another financial asset from another entity; or
ii. to exchange financial assets or financial liabilities with another entity under
conditions that are potentially favourable to the entity; or
(d) a contract that will or may be settled in the entity’s own equity instruments and is:
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ii. a derivative that will or may be settled other than by the exchange of a fixed
amount of cash or another financial asset for a fixed number of the entity’s
own equity instruments. For this purpose the entity's own equity instruments
do not include instruments that are themselves contracts for the future
receipt or delivery of the entity's own equity instruments.
(b) a contract that will or may be settled in the entity’s own equity instruments and is:
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an
=1000*100,000
=100,000,000 LKR
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4. Present value Interest payable each years