Which tests must a company use to determine which operating segments require separate disclosure?
A) revenue test and asset test.
B) revenue test, profit or loss test, and asset test.
C) revenue test and profit or loss test.
D) profit or loss test and asset test.
E) revenue test, asset test, and liability test.

Question

Quizplus · Accepted Answer

According to the IFRS 8 Operating Segments standard, a company must first apply the quantitative thresholds of the revenue test and asset test to identify reportable segments. If those tests do not identify all reportable segments, the company must also apply the profit or loss test to identify any additional segments that meet that threshold. Therefore, the correct answer is B, as it includes all three tests required by the standard.

Which Tests Must a Company Use to Determine Which Operating