AASB 8 prescribes that an operating segment must be identified on the basis of:

A) geographic location;
B) predominant sources of risks and returns;
C) the way information is reported internally to the CODM;
D) the usefulness of financial information available to users.

Question

AASB 8 prescribes that an operating segment must be identified on the basis of:

A) geographic location;
B) predominant sources of risks and returns;
C) the way information is reported internally to the CODM;
D) the usefulness of financial information available to users.

Quizplus · Accepted Answer

AASB 8 requires operating segments to be identified based on the internal reports that are regularly reviewed by the entity's chief operating decision maker (CODM) to allocate resources and assess performance.

AASB 8 Prescribes That an Operating Segment Must Be Identified