Where the total revenue derived by the reportable segments of a group from the provision of goods or services to external customers is less than 75% of the total group sales revenue:
A) other components of the business are identified as reportable segments until the 75% threshold is reached.
B) other components are combined as a reportable segment until the 75% threshold is reached.
C) other components are combined in segments in which the combined segment revenue derived from external sales is 10% or more of the total external sales until the 75% threshold is reached.
D) none of the above.

Question

Quizplus · Accepted Answer

When the total revenue from reportable segments is less than 75% of the total group sales revenue, additional segments are identified as reportable until the 75% threshold is reached. This ensures a comprehensive view of the entity's operations.

Where the Total Revenue Derived by the Reportable Segments of a Group