Operating

Segments
PSAK No. 5 (Rev 2009)

Edited by Taufik Hidayat

13-1

Operating Segment

PSAK
PSAK 55 (Rev
(Rev 2009)
2009) specified
specified the
the Operating
Operating
Segment
Segment as
as the
the only
only definition
definition of
of segment.
segment.
Operating
Operating segments
segments is
is aa component
component of
of
an
an entity:
entity:
that engages in business activities from
that engages in business activities from
which
which itit may
may earn
earn revenues
revenues and
and incur
incur
expenses
expenses
whose operating results are regularly
whose operating results are regularly
reviewed
reviewed by
by the
the entity's
entity's chief
chief operating
operating
decision
decision maker
maker to
to make
make decisions
decisions about
about
resources
resources to
to be
be allocated
allocated to
to the
the segment
segment
and
and assess
assess its
its performance,
performance, and
and
13-2
Edited by Taufik Hidayat
for which discrete
financial information

Operating Segment

Revenue,
Revenue, profits
profits or
or losses,
losses, and
and assets
assets
for
for each
each segment
segment are
are defined
defined by
by the
the
management
management as
as used
used for
for internal
internal
decision
decision making
making purposes.
purposes.
Operating
Operating segments
segments can
can be
be product
product
lines,
lines, geographical
geographical areas,
areas, service
service lines
lines
of
of business,
business, or
or other
other segments
segments of
of the
the
entity
entity determined
determined by
by management.
management.
There
There is
is no
no primary
primary and
and secondary
secondary
segment
segment reporting
reporting anymore.
anymore.
The
segment
reporting
footnote
The
segment
reporting
footnote
presents
presents information
information on
on operating
operating
Edited by
Taufik Hidayatmanner
segments
same
segments in
in the
the
same
manner as
as used
used13-3

Reportable segments
An
entity
shall
report
separately information about
each operating segment that :
has
been
identified
as
operating segment, and
exceeds
the
quantitative
thresholds

Edited by Taufik Hidayat

13-4

Ten Percent Quantitative

Thresholds
PSAK
PSAK specified
specified three
three 10
10

percent
percent significance
significance rules.
rules.
Separate
What
Separate disclosures
disclosures are
are
What is
is the
the 10
10
required
percent
required ifif an
an operating
operating
percent
significance
segment meets
meets at
at least
least one
one
significance rule
rule segment
of
concerning
of the
the tests.
tests.
concerning
segment
segment
disclosure?
disclosure?

Edited by Taufik Hidayat

13-5

Ten Percent Quantitative

Thresholds
Its reported revenue, including both sales

to external customers and intersegment

sales or transfers, is 10 percent or more of
the combined revenue, internal and
external, of all operating segments,
The absolute amount of its reported profit
or loss is 10 percent or more of the greater,
in absolute amount, of (a) the combined
reported profit of all operating segments
that reported a profit or (b) the combined
reported loss of all segments that reported
a loss.
Continued
Continued
13-6
Edited by Taufik Hidayat

Ten Percent Quantitative

Thresholds
Its assets are 10 percent or more of the

combined assets of all operating

segments.

Edited by Taufik Hidayat

13-7

Illustration of
10 Percent
Tests

Edited by Taufik Hidayat

13-8

Ten Percent Revenue Test

Segment

Segment
Revenue

Percent of Combined Reportable

Revenue of $600,000
Segment

Food Products
$323,000
Plastic and Packaging
113,000
Consumer and Commercial
45,000
Health and Scientific
86,000
Chemicals
33,000
Total
$600,000

53.8%
18.8
7.5
14.3
5.5
100.0%*

*Unrounded percents for segments total to 100 percent.

Edited by Taufik Hidayat

Yes
Yes
No
Yes
No

Separately
reportable?

13-9

Ten Percent Profit (Loss) Test

Segment
Reportable

Profit
(Loss)

Percent of Test
Amount of $279,000

Separately

71.0%
21.1
9.0
7.9
3.2

Yes
Yes
No
No
No

Food Products
$198,000
Plastic and Packaging
59,000
Consumer and Commercial (25,000)
Health and Scientific
22,000
Chemicals
(9,000)

Separately
reportable?
Edited by Taufik Hidayat

13-10

Asset Test

Segment

Segment
Assets

Food Products
$ 411,000
Plastic and Packaging
375,000
Consumer and Commercial
100,000
Health and Scientific
310,000
Chemicals
80,000
Total
$1,276,000

Percent of
Test Amount of
$1,276,000

32.2%
29.4
7.8
24.3
6.3
100.0%

Separately
Reportable

Yes
Yes
No
Yes
No

Separately
reportable?
Edited by Taufik Hidayat

13-11

Asset Test
Items
Items comprising
comprising
each
each segments
segments
assets
assets are
are defined
defined by
by
management.
management.

Edited by Taufik Hidayat

13-12

Seventy-Five Percent Revenue

Test
Sales to unaffiliated customer by
reportable segments:
Food Products
Plastic and Packaging
Health and Science
Total of reportable segments
Consolidated revenue
Reportable segments percentage of
consolidated revenue

$317,000
95,000
86,000
$498,000
572,000
87.1%

Because
Becausethis
thispercentage
percentageififequal
equalto
toor
orgreater
greater
than
than75
75percent,
percent,no
nofurther
furtheroperating
operating
$498,000 $572,000
segments
segmentsmust
mustbe
beseparately
separatelyreported.
reported.
Edited by Taufik Hidayat

13-13

Edited by Taufik Hidayat

14

Reporting Segment Information

PSAK
PSAK 55 (rev
(rev 2009)
2009) states
states
that
that the
the following
following must
must be
be
disclosed
disclosed for
for each
each segment
segment
determined
determined to
to be
be
separately
separately reportable.
reportable.

Edited by Taufik Hidayat

13-15

Reporting Segment Information

General
General information
information about
about (a)
(a) the
the factors
factors

used
used to
to identify
identify the
the entitys
entitys reportable
reportable
segments,
including
the
basis
segments,
including
the
basis
organization,
organization, and
and (b)
(b) types
types of
of products
products
and
and services
services from
from which
which each
each reportable
reportable
segment
segment obtains
obtains its
its revenue.
revenue.

Information
Information about
about the
the reported
reported profit
profit or
or
loss,
loss, including
including specified
specified revenues
revenues and
and
expenses
expenses included
included in
in reported
reported segment
segment
profit
profit or
or loss,
loss, segment
segment assets
assets and
and
liabilities.
liabilities.
Continued
Continued
Edited by Taufik Hidayat

13-16

Reporting Segment Information

Information
Information on
on the
the following
following ifif these
these items
items

are
are included
included in
in the
the determination
determination of
of
segment
(a)
segment assets:
assets:
(a) the
the amount
amount of
of
investment
investment in
in associates
associates and
and joint
joint ventures
ventures
accounted
accounted for
for by
by equity
equity method
method and
and (b)
(b) the
the
amounts
amounts of
of additions
additions to
to non-current
non-current assets.
assets.

Reconciliations
Reconciliations of
of the
the total
total reportable
reportable
segments
segments revenues,
revenues, measures
measures of
of segment
segment
profit
profit or
or loss,
loss, and
and segments
segments assets
assets &
&
liabilities
liabilities to
to the
the related
related consolidated
consolidated totals
totals
for
for those
those items.
items.
Edited by Taufik Hidayat

13-17

PENGUNGKAPAN
PADA LEVEL ENTITAS
(Enterprisewide
Disclosures)
Disclosures
Edited by Taufik Hidayat

18

Enterprisewide Disclosures
Information about Products and
Services
The company is required to report
the
revenues
from
external
customers for each product and
service, or each group of similar
products and
services, unless it is
impractical.

Edited by Taufik Hidayat

13-19

Enterprisewide Disclosures

Information about Geographic Areas

Revenues from external customers

attributed to home country of domicile

and from external customers attributed
to foreign countries.
non-current assets (i) located in the
entity's country of domicile and (ii)
located in all foreign countries.
Revenues from, and non-current assets
in, any individual country, if material,
must be separately disclosed
Edited by Taufik Hidayat

13-20

Enterprisewide Disclosures
Information about Major Customers
First issue is how to define an individual

customer.
For applying the disclosure test, any
single customer, the federal government,
a state government, a local government,
or a foreign government is considered to
be an individual customer.
Materiality is defined by PSAK 5 is10
percent.
Edited by Taufik Hidayat

13-21

Chapter Thirteen

The
End
Edited by Taufik Hidayat

13-22