Which of the following is not a requirement for a business component to be considered an Operating Segment under current Canadian GAAP?
A) Discrete financial information must be available.
B) Operating results are regularly reviewed by the enterprise's Chief Operating Decision Maker to make decisions about resources to be allocated to the segment and assess its performance.
C) The reportable income or loss must be at least 10% of the combined profit or loss for the combined entity.
D) It engages in business activities from which it may earn revenues and incur expenses.

Question

Quizplus · Accepted Answer

In accordance with current Canadian GAAP, the reportable income or loss for an operating segment must represent at least 10% of the combined profit or loss of the entire entity in order to be considered a reportable operating segment. However, discrete financial information, regular review of operating results by the Chief Operating Decision Maker, and engagement in business activities that generate revenues and expenses are all requirements for a business component to be considered an operating segment.

Which of the Following Is Not a Requirement for a Business