An entity is permitted to aggregate operating segments that have similar economic characteristics under certain circumstances. Which
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An entity is permitted to aggregate operating segments that have similar economic characteristics under certain circumstances. Which of the following circumstances would allow aggregation of Entity A into Segment B?
1. Entity A is expected to be included in Segment Z, a new segment, in future periods.
2. Segment B consists of retail and wholesale operations and Entity A was primarily a retail establishment but is now engaged primarily in rendering services to the parent entity.
3. Entity A was spun off from Entity C and is now owned directly by the parent entity.
4. Entity A has recently filed bankruptcy and will be liquidated.
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Related Book For
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
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