CHAPTER 35

OPERATING SEGMENTS
(Part 2)

PROBLEMS

Problem 35-5 Multiple choice (PFRS 8)

1. If a financial report contains both the consolidated financial statements of

a parent and the parent's separate financial statements, segment

information is required in

a. The separate financial statements only

b. The consolidated financial statements only

c. Both the separate and consolidated financial

d. Neither the separate nor the consolidated financial statements.

2. An operating segment is a component of an entity.

a. That engages in business activities from which it may earn revenue and incur

expenses.

b. Whose operating results are regularly reviewed by the entity's chief operating

decision maker.

c. For which discrete information is available.

d. All of these characterize an operating segment.

3. Which quantitative threshold is not a requirement in qualifying a

reportable segment?

a. The segment revenue, both external and internal, is 10% or more of the combined

external and internal revenue of all operating segments.

b. The segment profit or loss is 10% or more of the greater between the combined

profit of profitable segments and combined loss of unprofitable segments.

c. The segment assets are 10% or more of the combined assets of all operating

segments.
d. The segment assets are 20% or more of the combined assets of all operating

segments.

4. An operating segment is considered reportable when any of the following

conditions is met, except

a. Segment revenue is 10% or more of the combined revenue of all segments

b. Segment assets are 10% or more of the combined assets of all segments.

c. Segment liabilities are 10% or more of the combined liabilities of all segments.

d. Segment profit or loss is 10% or more of the combined profit of all segments that did

not incur a loss.

5. Operating segments that do not meet any of the quantitative thresholds

a. Cannot be considered reportable.

b. Maybe considered reportable and separately disclosed if management believes that

information about the segment would be useful to the statement users.

c. May be considered reportable and separately disclosed if the information is for

internal use only.

d. May be considered reportable and separately disclosed if this is the practice within

the economic environment,