Diether John L.

Geronimo
BSBA-2A
Solution 13-1: Answer c (AICPA Adapted)
Total revenue Percent
Alo 8,000 9.64%
Bix (reportable) 12,000 14.46%
Cee 4,000 4.82%
Dil (reportable) 59,000 71.08%
83,000 100.00%

Only Bix and Dil have a revenue of 10% or more of the combined revenue and therefore are
considered reportable segments.

Solution 13-2: Answer C (AICPA Adapted)

Industry Revenue Profit Assets
A 10,000,000 1,750,000 20,000,000
B 8,000,000 1,400,000 17,500,000
C 6,000,000 1,200,000 12,500,000
D 3,000,000 550,000 7,500,000
E 4,250,000 675,000 7,000,000
F 1,500,000 225,000 3,000,000
32,750,000 5,800,000 67,500,000
How many reportable segments does Correy have?
a. Three
b. Four
c. Five
d. Six

Under PFRS 8, an entity shall disclose information about an operating segment that meets
any of the following quantitative thresholds:
1) The segment revenue, including both sales to external customers and intersegment
sales or transfers, is 10% or more of the combined revenue, internal and external, of
all operating segments.
2) The segment profit or loss is 10% or more of the greater of the following in absolute
amount:
a. The combined profit of all operating segments with profit
b. The combined loss of all operating segments with loss
3) The assets of the segment are 10% or more of the combined assets of all operating
segments.
Accordingly, A, B, C, D and E are reportable segments because their revenue or profit or asset
is at least 10% of the combined amount.