The following information relates to All Industrials Ltd and its operating segment (in $'000s): $$\begin{array} { | l | r | r | r | r | r | r | }
\hline & { \text { Retail } } & { \text { Agriculture } } & { \text { Brewing } } & \text { Chemicals } & \text { Transport } & \text { Total } \\
\hline \text { Segment revenues } & & & & & & \
\hline \text { External } & 1100 & 1500 & 320 & 215 & 100 & 3235 \
\hline \text { Other segments } & 150 & 200 & 28 & 41 & 40 & 459 \
\hline \text { Segment results } & 220 & 127 & ( 30 ) & ( 360 ) & ( 20 ) & ( 63 ) \
\hline \text { Segment assets } & 360 & 260 & 50 & 50 & 51 & 771 \
\hline
\end{array}$$ Which operating segments are considered to be reportable under AASB 8 using the segment revenue qualitative threshold?
A) all segments
B) retail and agriculture
C) retail, agriculture and brewing
D) retail, agriculture and chemicals

Question

The following information relates to All Industrials Ltd and its operating segment (in $'000s): $$\begin{array} { | l | r | r | r | r | r | r | } 
\hline &  { \text { Retail } } & { \text { Agriculture } } & { \text { Brewing } } & \text { Chemicals } & \text { Transport } & \text { Total } \\
\hline \text { Segment revenues } & & & & & & \
\hline \text { External } & 1100 & 1500 & 320 & 215 & 100 & 3235 \
\hline \text { Other segments } & 150 & 200 & 28 & 41 & 40 & 459 \
\hline \text { Segment results } & 220 & 127 & ( 30 ) & ( 360 ) & ( 20 ) & ( 63 ) \
\hline \text { Segment assets } & 360 & 260 & 50 & 50 & 51 & 771 \
\hline
\end{array}$$ Which operating segments are considered to be reportable under AASB 8 using the segment revenue qualitative threshold?
A) all segments
B) retail and agriculture
C) retail, agriculture and brewing
D) retail, agriculture and chemicals

Quizplus · Accepted Answer

Under AASB 8, an operating segment is reportable if it meets any of the quantitative thresholds, one of which is that its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10% or more of the combined revenue, internal and external, of all operating segments. In this case, Retail (1250) and Agriculture (1700) both exceed 10% of the total combined revenue (3694), making them reportable segments.

The Following Information Relates to All Industrials Ltd and Its