AS 17

Segment Reporting
Objective Type
1. AS 17 on segment reporting is applicable
from:

a. The quarter beginning 1.4.2001

b. The half year beginning 1.4.2001

c. The accounting period commencing on or

after 1.4.2001

d. The quarter ending 31.3.2001

1. AS 17 on segment reporting is applicable
from:

a. The quarter beginning 1.4.2001

b. The half year beginning 1.4.2001

c. The accounting period commencing on or

after 1.4.2001

d. The quarter ending 31.3.2001

2. AS 17 on segment reporting is mandatory in respect of;

a. Enterprises whose equity or debt securities

are listed on a recognized stock
exchange in India

b. Enterprises that are in the process of

issuing equity or debt securities that will be
listed on a recognized stock exchange in
India
c. Commercial, industrial and business
reporting enterprises whose turnover for
the accounting period exceeds Rs.50
crores

d. it is mandatory in respect of all the above

enterprises
2. AS 17 on segment reporting is mandatory in respect of;

a. Enterprises whose equity or debt securities

are listed on a recognized stock
exchange in India
b. Enterprises that are in the process of
issuing equity or debt securities that will be
listed on a recognized stock exchange in
India
c. Commercial, industrial and business
reporting enterprises whose turnover for
the accounting period exceeds Rs.50
crores
d. it is mandatory in respect of all the
above enterprises
3. What is the objective of AS 17

a. to establish principles for reporting financial information about the

different types of products and services of an enterprise produces
and the different geographical areas in which it operates

b. to report the financial results of different segments of an enterprise

providing different types of products and services and the different
geographical areas in which it operates

c. To assess the performance of different segments of an enterprise

providing different types of products and services and the different
geographical areas in which it operates

d. the main objective of AS 17 is to provide segment

information as it is widely regarded as necessary for meeting
the needs of users of financial statements
3. What is the objective of AS 17

a. to establish principles for reporting financial information about the

different types of products and services of an enterprise produces
and the different geographical areas in which it operates

b. to report the financial results of different segments of an enterprise

providing different types of products and services and the
different geographical areas in which it operates

c. To assess the performance of different segments of an

enterprise providing different types of products and services and
the different geographical areas in which it operates

d. the main objective of AS 17 is to provide segment

information as it is widely regarded as necessary for
meeting the needs of users of financial statements
4. How the information from segment reporting helps users of
financial statements?

a. Better understand the performance of each segment;

better assess the risks and returns associated in a
particular segment; and make more informed
judgments about a particular segment

b. Better understand the performance of the enterprise;

better assess risks and returns; and make more
informed judgment about the enterprise as a whole

c. Better understand the performance of the industry;

better assess the risks and returns; and make more
informed judgments about the industry as a whole

d. Comparison between a, b and c

4. How the information from segment
reporting helps users of financial statements?
a. Better understand the performance of each segment;
better assess the risks and returns associated in a
particular segment; and make more informed
judgments about a particular segment

b. Better understand the performance of the enterprise;

better assess risks and returns; and make more
informed judgment about the enterprise as a whole

c. Better understand the performance of the industry;

better assess the risks and returns; and make more
informed judgments about the industry as a whole

d. Comparison between a, b and c

5. How the segment information need to be
presented?
a. On the basis of separate financial statements of
the parent

b. On the basis of the consolidated financial

statements
c. On the basis of both separate financial statements
of the enterprise and the consolidated financial
statements

d. Either a or b
5. How the segment information need to be
presented?
a. On the basis of separate financial statements of
the parent

b. On the basis of the consolidated financial

statements
c. On the basis of both separate financial statements
of the enterprise and the consolidated financial
statements

d. Either a or b
6. Which of the following factors should be considered in
determining whether products or services are related?

a. Proximity of operations

b. Exchange control regulations

c. Currency risks

d. The type or class of customers for the products or

services
6. Which of the following factors should be considered in
determining whether products or services are related?

a. Proximity of operations

b. Exchange control regulations

c. Currency risks

d. The type or class of customers for the products or

services
7. Which of the following factor should be considered in
identifying geographical segment?

a. The nature of the products or services

b. the type or class of customers for the products or

services

c. Proximity of operations

d. Nature of the production process

7. Which of the following factor should be considered in
identifying geographical segment?

a. The nature of the products or services

b. the type or class of customers for the products or

services

c. Proximity of operations

d. Nature of the production process

8. What is enterprise revenue?

a. Revenue from sales to external customers as

reported in the statement of profit or loss

b. Revenue from sales including internal transfers

c. Turnover relating to external customers less

expenses relating to those turnovers as reported
in the statement of profit and loss

d. Turnover including internal transfers less related

expenses
8. What is enterprise revenue?

a. Revenue from sales to external customers as

reported in the statement of profit or loss

b. Revenue from sales including internal transfers

c. Turnover relating to external customers less

expenses relating to those turnovers as reported
in the statement of profit and loss

d. Turnover including internal transfers less related

expenses
 9. What is segment revenue?

a. A portion of enterprise revenue that is directly

attributable to a segment

b. relevant portion of enterprise revenue that can be

allocated on a reasonable basis to a segment

c. revenue from transactions with other segments

of the enterprise

d. Aggregate of all the 3.

 9. What is segment revenue?

a. A portion of enterprise revenue that is directly

attributable to a segment

b. relevant portion of enterprise revenue that can be

allocated on a reasonable basis to a segment

c. revenue from transactions with other segments

of the enterprise

d. Aggregate of all the 3.

10. What are the items to be excluded from
segment revenue?

a. Extraordinary items as defined in AS5, net profit

or loss for the period, prior period items and
changes in accounting policies

b. interest or dividend income

c. gains on sale of investments

d. all the above items are excluded from segment

revenue
10. What are the items to be excluded from
segment revenue?

a. Extraordinary items as defined in AS5, net profit

or loss for the period, prior period items and
changes in accounting policies

b. interest or dividend income

c. gains on sale of investments

d. all the above items are excluded from segment

revenue
11. What is segment expense?
a. Expense relating to transactions with other
segments of the enterprise

b. The expense resulting from operating activities of

a segment that is directly attributable to the
segment

c. The relevant portion of the enterprise expense

that can be allocated on a reasonable basis to the
segment

d. aggregate of all the above

11. What is segment expense?
a. Expense relating to transactions with other
segments of the enterprise

b. The expense resulting from operating activities of

a segment that is directly attributable to the
segment

c. The relevant portion of the enterprise expense

that can be allocated on a reasonable basis to the
segment

d. aggregate of all the above

 12. What are the items to be excluded
from segment expenses?
a. Income tax expense

b. General administrative expense, HO expenses and

other expenses that arise at the enterprise level
and relate to the enterprise as a whole

c. Expense relating to transactions with other

segment of the enterprise

d. Both a and b.
 12. What are the items to be excluded
from segment expenses?
a. Income tax expense

b. General administrative expense, HO expenses and

other expenses that arise at the enterprise level
and relate to the enterprise as a whole

c. Expense relating to transactions with other

segment of the enterprise

d. Both a and b.
 13. Which of the following is not
included in segment assets?

a. Operating assets employed by a segment in its

operating activities

b. Receivables

c. Income tax assets

d. Investments
 13. Which of the following is not
included in segment assets?

a. Operating assets employed by a segment in its

operating activities

b. Receivables

c. Income tax assets

d. Investments
14. How the predominant source and nature
of risks and differing rates of return to be
identified are based?

a. Internal organization and management structure

of an enterprise

b. The system of internal reporting to the BOD and

the chief executive officer

c. As decided by the BOD and the chief executive

officer

d. Both a and b
14. How the predominant source and nature
of risks and differing rates of return to be
identified are based?

a. Internal organization and management structure

of an enterprise

b. The system of internal reporting to the BOD and

the chief executive officer

c. As decided by the BOD and the chief executive

officer

d. Both a and b
15. What are the exceptions to the general classification of segments as
primary and secondary segment reporting format?

a. If risks and returns are strongly affected both by differences in the

products and services and by the differences in the geographical
areas, the enterprise should use business segment as its primary
segment reporting format and geographical segments as its
secondary reporting format

b. If the internal organizational and management structure of an

enterprise and its system of internal financial reporting to the BOD
and the chief executive officer are based neither on products or
services nor on geographical areas, the directors and the
management should determine whether the risks are related more to
the products and services or to the geographical areas and should
accordingly choose business segment or geographical segment as
the primary reporting format with the other as the secondary
reporting format
c. If the risks and returns are strongly affected both
by differences in the products and services and by
the differences in the geographical areas and the
internal organizational and management structure
of an enterprise and the system of internal
financial reporting to the BOD and CEO are based
neither on products or services nor on
geographical areas, then it is upto the
management to decide its segment reporting
formats

d. both a and b
15. What are the exceptions to the general classification of segments as
primary and secondary segment reporting format?

a. If risks and returns are strongly affected both by differences in the

products and services and by the differences in the geographical
areas, the enterprise should use business segment as its primary
segment reporting format and geographical segments as its
secondary reporting format

b. If the internal organizational and management structure of an

enterprise and its system of internal financial reporting to the BOD
and the chief executive officer are based neither on products or
services nor on geographical areas, the directors and the
management should determine whether the risks are related more to
the products and services or to the geographical areas and should
accordingly choose business segment or geographical segment as
the primary reporting format with the other as the secondary
reporting format
c. If the risks and returns are strongly affected both
by differences in the products and services and by
the differences in the geographical areas and the
internal organizational and management structure
of an enterprise and the system of internal
financial reporting to the BOD and CEO are based
neither on products or services nor on
geographical areas, then it is upto the
management to decide its segment reporting
formats

d. both a and b
16. When does a business segment or geographical
segment become a reportable segment?
a. Its revenue from sales to external customers and
from transactions with other segments is 10% or
more of the total revenue, internal and external,
of all segments
b. The segment result, whether profit or loss is 10%
or more the combined results of all segments in
profit or the combined results of all segments in
loss whichever is greater in absolute amounts
c. The segment assets are 10% or more of the total
assets of all segments
d. All the above 3.
16. When does a business segment or geographical
segment become a reportable segment?
a. Its revenue from sales to external customers and
from transactions with other segments is 10% or
more of the total revenue, internal and external,
of all segments
b. The segment result, whether profit or loss is 10%
or more the combined results of all segments in
profit or the combined results of all segments in
loss whichever is greater in absolute amounts
c. The segment assets are 10% or more of the total
assets of all segments
d. All the above 3.