IFRS 8 OPERATING SEGMENTS

1. In financial reporting for segments of a business enterprise, the segment results includes a portion of
a. Interest expense
c.Indirect operating expenses
b. Extraordinary losses
d. General corporate expenses
2. The method used to determine what information to report for business segments is referred to as
a. Segment approach
b. Management approach
c. Operating approach
d. Enterprise
approach
3. A group is organized into a number of business divisions across the world. The group has two main
classes of business: insurance and banking. The management Board receives information from each
business division on a quarterly basis and wishes to report segmental information on the basis of these
divisions. What should be the groups reporting of the primary segmental information?
a. The worldwide business divisions
b. The classes of business
c. The entity should make full disclosure on the basis of the worldwide divisions and the classes of business
d. It would depend on the different risks and rewards but is likely to be the different classes of business.
4. An entity is in the entertainment industry and organizes outdoor concerts in four different areas of the
world: Europe, North America, Australia, and Japan. The entity reports to the board of directors on the basis
of each of the four regions. The concerts are two types: popular music and classical music. What is the
appropriate basis for segment reporting in this entity?
a. The segments should be reported by class of business, that is popular and classical music.
b. The segments should be reported by region, so Australia and Japan would be combined
c. The segment information should be reported as North America and the rest of the world.
d. Segment information should be reported for each of the four different regions.
5. Segment assets include all of the following, except
a. Income tax assets
b. Goodwill directly attributable to a segment
c. Operating assets shared by two or more segments
d. Current assets used in the operating activities of the segment
6. What is the approach of looking into an enterprises organizational and management structure and its
financial reporting system in order to identify the enterprises geographical and business segments?
a. Enterprise approach
c. Operating approach
b. Segment approach
d. Management approach
7. A business or geographical segment is a reportable segment if a majority of its revenue is earned from
sales to external customers and (choose the incorrect one)
a. Segment internal and external revenue is 10% or more of total internal and external revenue of all
segments
b. Segment external revenue is 10% or more of total internal and external revenue of all segments
c. Segment result is 10% or more of the combined result of all segments in profit or combined result of all
segments in loss, whichever is greater in absolute amount
d. Segment assets are 10% or more of the total assets of all segments
ANSWER KEY:
1.
2.
3. D
4. D
5. A
6. D
7. B
8.