Measurements of

Results of
Operations of
Reportable
Segments
An entity shall report information about an operating
segment that meets any of the following quantitative
thresholds:
The segment revenue, including both sales to external customers
1 and intersegment sales or transfers, is 10% or more of the
combined revenue, internal and external, of all operating segments.

2. The absolute amount of profit or loss of the segment is 10% or

2 more of the greater in absolute amount of:

a. Combined profit of all operating segments that reported a profit.

b. Combined loss of all operating segments that reported a loss
An entity shall report information about an operating
segment that meets any of the following quantitative
thresholds:
The assets of the segment are 10% or more of the combined
3 segments of all operating segments

Operating segments that do not meet any of the quantitative

thresholds may be considered reportable and separately disclosed
on a voluntary basis if management believes that information
about the segment would be useful to the users of the financial
statements.
Illustration
Revenue Profit (loss) Assets
Segment A 16,000,000 1,700,000 25,000,000
Segment B 13,000,000 500,000 11,000,000
Segment C 6,000,000 (1,000,000) 3,000,000
Segment D 3,000,000 200,000 2,000,000
Segment E 2,000,000 (100,000) 4,000,000
40,000,000 1,300,000 45,000,000
Basis on how to determine if a segment is considered as a
reportable segment.
Basis for revenue: Basis for profit (loss)
10% of the total revenue 10% of greater figure
10% x 40,000,000 = 10% x 2,400,000 = 240,000
4,000,000

Basis for assets:

10% of the total assets
10% x 45,000,000 =
4,500,000
 In profit (loss),
the profit must Profit Loss
be combined Segment A 1,700,000
and the losses Segment B 500,000
must be
combined to Segment C (1,000,000)
determine Segment D 200,000
which is greater
Segment E (100,000)
between the
two. 2,400,000 1,100,000
Reportable segments based from the illustration

Revenue Profit (loss)

1 Segment A, B, & C
2 Segment A, B, & C

Assets
3 Segment A & B
Aggregation of segments
Two or more operating segments may be aggregated into a "single
operating segment" if the segments have similar economic characteristics
and the segments share a majority if the following five aggregation
criteria:

a. Nature of product or service

b. Nature of production process
c. Type or class of customers
d. Marketing method or the method used to distribute the product
e. The nature of the regulatory environment, for example, banking,
insurance or public utility.
 Disclosure
Requirements for
Operating Segments
Information to be disclosed for each segment
An entity shall disclose the following for each reportable operating
segment:

1. General information about the operating segment

2. Information about profit or loss including specified revenue and
expenses included in the measure of profit or loss
3. Information about segment assets and segment liabilities and the basis
of measurement.
4. Reconciliations of the totals of segment revenue, segment profit or loss,
segment assets segment liabilities and other material segment items to
corresponding items in the entity's financial statements.
Disclosure about general information
An entity shall disclose the following general information about an
operating segment:

a. Factors used to identify the reportable segments

b. Type of products and services from which each reportable segment
derives revenue.

Disclosure of profit or loss, assets and liabilities

An entity shall disclose for each reportable segment a measure of profit or
loss, total assets and total liabilities.
Disclosure of profit or loss, assets and liabilities
An entity shall disclose a measure of profit or loss under all
circumstances.

However, an entity shall disclose a measure of total assets and total

liabilities for each reportable segment if such an amount is regularly
provided to the chief operating decision maker.

Entity-wide disclosures
Entity-wide disclosures are additional information that is required to be
disclosed by all entities if such information is not provided as part of the
reportable segment information.
An entity shall disclose information about the following:

a. Information about products and services

b. Information about geographical areas
c. Information about major customers

Revenue from products and services

An entity shall disclose the revenue from external customers for each
product and service

Revenue and assets from geographical areas

An entity shall disclose the revenue from external customers for each
product and service
Revenue and assets from geographical areas
An entity shall disclose the following geographical information:

a. Revenue from external customers in the entity's country of domicile, and

in all foreign operations in total.
b. Separate disclosure of material revenue from external customers in an
individual foreign country.

Disclosure about major customer

A major customer is defined as a single external customer providing
revenue which amounts to 10% or more of an entity's external revenue.
Disclosure about major customer
The entity shall disclose the fact of reliance on major customers, the total
amount of revenue from major customers and the identity of the segment
or segments reporting the revenue.

The entity is not required to disclose the identity of the major customer or
the amount of revenue that each segment reports from that customer.