Exercise 1

Operating
(%) Revenue (%) Profit (%) Asset
Segments
A 38 25 40
B 9 4 5
C 7 12 9
D 8 6 22
E 6 7 8
F 32 47 16
TOTAL 100 100 100

Requirement: Identify the reportable segments under the quantitative thresholds of PFRS 8.
Operating
(%) Revenue (%) Profit (%) Asset
Segments
A 38 Y 25 40
B 9 N 4 N 5 N
C 7 N 12 Y 9
D 8 N 6 N 22 Y
E 6 N 7 N 8 N
F 32 Y 47 16
TOTAL 100 100 100

Requirement: Identify the reportable segments under the quantitative thresholds of PFRS 8.
Exercise 2

Operating Internal Profit or Identifiable

External revenue
segments revenue (loss) assets

A 1,200,000 200,000 (300,000) 5,000,000

B 900,000 100,000 (180,000) 1,300,000
C 800,000 250,000 220,000 900,000
D 600,000 160,000 270,000 1,800,000
E 300,000 - (20,000) 800,000
F 200,000 - (30,000) 1,200,000
TOTALS 4,000,000 710,000 (40,000) 11,000,000

Requirements:
a. Identify the reportable segments under the quantitative thresholds of PFRS 8.
b. Determine whether the reportable segments meet the limit on external revenues under PFRS 8.
nues under PFRS 8.
Operating Internal Profit or
External revenue Total revenue 10% test Profit
segments revenue loss)

A 1,200,000 200,000 1,400,000 30% Y (300,000)

B 900,000 100,000 1,000,000 21% Y (180,000)
C 800,000 250,000 1,050,000 22% Y 220,000 220,000
D 600,000 160,000 760,000 16% Y 270,000 270,000
E 300,000 - 300,000 6% N (20,000)
F 200,000 - 200,000 4% N (30,000)
TOTALS 4,000,000 710,000 4,710,000 (40,000) 490,000

Requirements:
a. Identify the reportable segments under the quantitative thresholds of PFRS 8.
b. Determine whether the reportable segments meet the limit on external revenues under PFRS 8.

A 1,200,000
B 900,000
C 800,000
D 600,000 4,000,000 Total external revenue
F 200,000 x 75%
3,700,000 > 3,000,000 minimum

Meets the limit on external revenues (75%)

 External
Identifiable 10% Revenue of
Loss 10% test
assets test Reportable
Segments

300,000 57% Y 5,000,000 45% Y 1,200,000

180,000 34% Y 1,300,000 12% Y 900,000
42% Y 900,000 8% N 800,000
51% Y 1,800,000 16% Y 600,000
20,000 4% N 800,000 7% N -
30,000 6% N 1,200,000 11% Y 200,000
530,000 11,000,000 3,700,000 above the 75% threshold
Greater

nues under PFRS 8.