Segment Reporting Assignment

Running head: SEGMENT REPORTING
Segment Reporting
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1SEGMENT REPORTING
Table of Contents
Answer to Part 1a:......................................................................................................................2
Answer to Part 2c:......................................................................................................................3
References:.................................................................................................................................7

2SEGMENT REPORTING
Answer to Part 1a:
According to Aleksanyan and Danbolt (2015), external segment reporting is
geographically-based, while the internal segment reporting is industry-based or product-line
based. According to AASB 8, the components of a business organisation includes
engagement in business activities, review of operating results on the part of the chief
decision-maker and availability of discrete financial information. The segmental expenses of
a business organisation consist of the following:
 Inter-segmental transactions in relation to result from operational activities
 Inter-segmental transactions that are attributable directly or allocable to a segment
reasonably
As laid out by Cormier, Magnan and Demaria (2016), the reportable segments of an
organisation comprise of the business and geographical segments, for which maximum
portion of the revenue is made through sale to the external customers and they include the
following as well:
 Transaction with the other segments is above 10% of the overall revenue
 Segment result is above 10% of the combined outcome of all segments
 Assets are above 10% or greater of the overall assets of the segments
The accounting policies related to segment reporting would be identical with those
utilised in the consolidated financial statements. In cases, two segments jointly use the same
asset or additional segments are allocable to segments, it is necessary to allocate the
associated revenues and expenses (Aasb.gov.au 2017).
According to AASB 10, the primary goal is to formulate doctrines for presenting and
preparing consolidated financial statements, when an organisation is the controller of a single