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

If the total revenue from reportable segments is less than 75% of the total group sales revenue, additional segments must be identified as reportable until the 75% threshold is met.

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