Consider the following list of operating segments and segment assets for the current reporting period relating to Arwen Ltd,and answer the question below. $$\begin{array} { | l | r | }
\hline \text { Operating segment } & \begin{array} { l }
\text { Segment assets } \
\text { in \$ }
\end{array} \
\hline \text { Clothing } & 250000 \
\hline \text { Household } & 350000 \
\hline \text { Fast food } & ? \
\hline \text { Multimedia } & 880000 \
\hline \text { Other operations } & 175000\
\hline
\end{array}$$ What is the minimum asset amount (rounded to the nearest $1000)that the fast food segment should have for that segment to be considered a reportable segment according to AASB 8?
A) $83 000
B) $106 000
C) $174 000
D) $184 000

Question

Consider the following list of operating segments and segment assets for the current reporting period relating to Arwen Ltd,and answer the question below. $$\begin{array} { | l | r | } 
\hline \text { Operating segment } & \begin{array} { l } 
\text { Segment assets } \
\text { in \$ }
\end{array} \
\hline \text { Clothing } & 250000 \
\hline \text { Household } & 350000 \
\hline \text { Fast food } & ? \
\hline \text { Multimedia } & 880000 \
\hline \text { Other operations } &  175000\
\hline
\end{array}$$ What is the minimum asset amount (rounded to the nearest $1000)that the fast food segment should have for that segment to be considered a reportable segment according to AASB 8?
A) $83 000
B) $106 000
C) $174 000
D) $184 000

Quizplus · Accepted Answer

According to AASB 8, a segment is reportable if its assets are at least 10% of the total assets of all segments. The total known assets are $1,655,000. To find the minimum assets for the fast food segment to be reportable, calculate 10% of $1,655,000, which is $165,500. Since the options are rounded to the nearest $1,000, the closest higher option is $184,000.

Consider the Following List of Operating Segments and Segment Assets