OPERATING SEGMENT

1. Boy Company provided the following information pertaining to operating segments for
the year ended December 31, 2015:
Total revenue 50,000,000
Sales to external customers included in total revenue 40,000,000

External revenue reported by reportable operating segments must be at least what

amount?

2. Coeo Company provided the following data for the current year
Sales 60,000,000
Costs of goods sold 28,000,000
Expenses 14,000,000
Depreciation 4,000,000
Income tax expense 4,000,000

The entity has two major reportable segments, X and Y. An analysis revealed that P
1,000,000 of the total depreciation expenses and P 2,000,000 of the expenses are
related to general corporate activities.

The remaining expenses and sales are directly allocated to segment activities
According to the following percentage:
Segment X Segment Y Others
Sales 40% 45% 15%
Costs of goods sold 35 50 15
Expenses 40 40 20
Depreciation 40 45 15

What amount should be reported as profit of segment X?

3.Gorugue Company, a publicly owned entity, is subject to the requirements of segment
reporting.
In the income statement for the year ended December 31, 2015, the entity reported
revenue of P 50,000,000, excluding Intersegment sales of P 10,000,000, expenses of P
47,000,000 and net income of P 3,000,000. Expenses included payroll costs of P
15,000,000
The combined identifiable assets of all operating segments on December 31, 2015
totaled P 40,000,000.

1. In the financial statement, the entity should disclose major customer data if sales to
any single customer amount to at least.
2. External revenue of reportable operating segments must be what amount?