Operating Segments (IFRS-8)

Example: - Application of quantitative thresholds

Operating Segments Segment Segment Segment

Revenue Profit/(Loss) Assets
Tk. Tk. Tk.
Wholesale 900 100 80
Retail 1,400 200 750
Transport 200 (35) 70
Total 2,500 265 900

Further information:

The wholesale segment includes internal sales to the retail segment of TK.600.

The transport segment derives revenue of TK.160 from internal services provided to both the
wholesale and retail segments.

Model Solution

Threshold amounts (calculated before any intersegment eliminations):

Total revenue: TK.250 (2,500 x 10%)

Operating results: TK.30 (300 x 10%), being 10% of the greater of the absolute amount of all
operating segments not reporting a loss (100 + 200) and all operating segments reporting a loss
(35)

Total assets: TK.90 (900 x 10%)

Considering each of the operating segments in turn:

Wholesale segment exceeds the revenue threshold (900 > 250) and the result threshold (100 >
30); but not the assets threshold (80 < 90)

Retail segment exceeds the revenue threshold (1,400 > 250); the result threshold (200 > 30); and
the assets threshold (750 > 90)

Transport segment exceeds the result threshold (35 > 30); but not the revenue threshold (200 <
250), nor the assets threshold (70 < 90).

Accordingly, all three segments meet at least one threshold and therefore all are reportable.