, 8. The following information pertains to Nolte Corp. and 13.

Two or more operating segments may be aggregated

its divisions for the current year. into a single operating segment if aggregation is
Sales to unaffiliated customers P2,000,000 consistent with the core principle of PFRS 8, the
Intersegment sales of products similar segments have similar economic characteristics, and
to those sold to unaffiliated the segments are similar in each of the following
customers 600,000 respects:
Interest earned on loans to other I. The nature of the products and services
operating segments 40,000 II. The nature of the production processes
III.The type or class of customer for their products
Nolte and all of its divisions are engaged solely in and services
manufacturing operations. Nolte has a reportable IV. The methods used to distribute their products or
segment if that segment's revenue is at least provide their services
a. P264,000 c. P260,000 V. The nature of the regulatory environment, for
b. P204,000 d. P200,000 example, banking, insurance or public utilities
a. I, II, II, IV and V
Use the following information for the next four questions. b. I, II, III, and IV only
c. I, III and V only
Grum Corp. a publicly owned corporation, is subject to the d. I and V only
requirements for segment reporting. In its income
statement for the current year, Grum reported revenues of 14. The equity of The Kaiaho Company is traded on a
P50,000,000, operating expenses of P47,000,000, and net recognized stock exchange. Kaiaho regularly reports
income of P3,000,000, Operating expenses include payroll the financial results of five different business units to its
costs of P15,000.000. Grum's combined identifiable assets chief operating decision maker. The relevant revenues
of all industry segments at the end of the current year for the year ended 31 December 2011 for these five
w e re P 4 0 , 0 0 0 , 0 0 0 . R e p o r t e d r e ve n u e s i n c l u d e operations, as a percentage of total external and internal
P30,000,000 of sales to external customers. revenue, were as follows:
Business
9. In its current year financial statements, Grum should operation % internal external % total
disclose major customer data if sales to any single 1 3 35 - 38
customer amount to at least 2 10 - 14° 24
a . P 300, 000 c. P4,000,000 3 15 5 20
b . P3,000,000 d. P5,000,000 4 0 9 9
5 0 9 - 9
10. Which statement is incorrect regarding 'major 28 72 100
customer information'? •
a. An entity shall provide information about the I n a c co r d an c e wi th P FRS 8 O p e r a ti n g s e g m e nts , th e
extent of its reliance on its major customers. re p ort a bl e s eg m e nts of K ai ah o ar e
b. If revenues from transactions with a single a. 1 and 2 only c. 1, 2,3 an d 4 onl y
external customer amount to 10 per cent or more b . 1,2 and 3 only d. 1,2,3,4 and 5
of an entity's revenues, the entity shall disclose
that fact, the total amount of revenues from each
such customer, and the identity of the segment or 15. Th e foll owin g s e g ments ha v e been identified for a
segments reporting the revenues. business, along with their sales. No segment qualifies
c. The entity need not disclose the identity of a major on any other criterion for determining reportable
customer or the amount of revenues that each segments except possibly for revenue. Sales for each
segment reports from that customer. segment, and the total for the company follow:
d. None of the above.
Segment Sales
11. External revenue reported by operating segments must 1 P 500,000
be at least 2 200,000
a. P22,500,000 c. P12,500,000 3 100,000
b. P15,000,000 d. P37,500,000 4 800,000
5 150,000
.
6 200,000
12. What should the entity do if the total external revenue 7 175,000
reported by operating segments constitutes less than P2,125,000 (total company sales)
75 per cent of the entity's revenue? What is the minimum number of reportable segments
a. Additional operating segments must be identified for this co m p an y?
as reportable segments. a. 5 c. 3
b. Additional operating segments must be identified b. 4 d. 2
as reportable segments even if they do not meet
the quantitative thresholds. 16. Taft Corp. discloses operating-segment information.
c. Additional operating segments must be identified The following information is available for the current
as reportable segments until at least 75 per cent of year:
the entity's revenue is included in reportable Operating Traceable
segments. Segment Sales Operating Expenses
d. All of the above.
A P1,000,000 P 600,000
B 800,000 500,000
C 600,000 350,000
2,400,000 P1,450,000