Question

Branson Industries conducts operations in five major industries, A, B, C, D, and E. Financial data relevant to each industry for the year ending December 31, 2008, are as follows:


Included in the sales of segments C and E are intersegment sales of $120,000 and $40,000, respectively. Corporate offices have assets of $95,000 and incurred general corporate expenses of $76,000. All corporate assets are located in the United States and depreciation on corpo- rate assets was $10,000. No single customer represents more than 10% of sales. There is no intercompany inventory in beginning or ending inventory. The intersegment sales are included in the measures reviewed by the chief operating decision maker, as are the capital expenditures and depreciation and amortization.

Required:
A. Which industry segments should be separately reported in the segment report, assuming that Branson defines its operating segments based on major industry (product/services)? Justify your answer.
B. Prepare a report to disclose required segment information under SFAS No. 131 [ASC 280]. Include the enterprisewidedisclosures.


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  • CreatedMarch 13, 2015
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