1.7 Segment Reporting

Opto Co. is a publicly-traded, consolidated enterprise reporting segment information. Which of the following items is a required enterprise-wide disclosure regarding external customers?

In order to conform to GAAP, financial statements for public business enterprises must report segment information about a company's major customers if that customer provides 10% or more of the combined revenue, internal and external, of all operating segments.

Which of the following qualifies as a reportable segment?

North American segment, whose assets are 12% of the company's assets of all segments, and management reports to the chief operating officer.

Which of the following should be disclosed for each reportable operating segment of an enterprise under U.S. GAAP?

Profit or Loss- Yes Total Assets- Yes

Which of the following types of entities are required to report on business segments?

Publicly-traded enterprises.

In financial reporting of segment data, which of the following items is always used in determining a segment's operating income?

Sales to other segments.

In financial reporting of segment data, which of the following must be considered in determining if an industry segment is a reportable segment?

Sales to unaffiliated customers-Yes Intersegment Sales-Yes

Under IFRS, which of the following is not disclosed for an entity's reportable segments?

Segment cash flow.

What information should a public company present about revenues from its reporting segments?

Disclose separately the amount of sales to unaffiliated customers and the amount of intracompany sales.

An enterprise must separately report information about an operating segment when the segment's revenue meets what minimum percentage of the combined revenue of all reported operating segments?

10%