Aggregation of segments is allowed only of reportable operating segments and only if a majority of the aggregation criteria are satisfied.

Question

Quizplus · Accepted Answer

Aggregation of operating segments is allowed if the segments have similar economic characteristics and if the segments are similar in each of the following areas: the nature of the products and services, the nature of the production processes, the type or class of customer for their products and services, the methods used to distribute their products or provide their services, and if applicable, the nature of the regulatory environment. There is no requirement that a majority of the aggregation criteria be satisfied, but rather that the segments are similar in these respects.

Aggregation of Segments Is Allowed Only of Reportable Operating Segments