Kaikoura Ltd is a listed manufacturing company with only one main product line:
scientific equipment. A second but very small product line is the data analysis software, which customers typically purchase with the equipment. It manufactures almost all of its products in New Zealand and exports almost 100% to Australia, Canada, Germany, and USA. Kaikoura Ltd is organised internally into two main business units: New Zealand (manufacturing, research and development (R&D), and head office) and export. The export business unit is in turn divided into four divisions: Australia, Canada, Germany and United States. The manufacturing unit, the R&D unit, and each export division reports separate financial and operational information to the chief executive officer (CEO) and chief financial officer (CFO) who are identified as the CODM. The results of the all business units are then aggregated to form the consolidated financial information. Details of the identified export operating segments are as follows.

Not included in the above table are the New Zealand operations, which cover (1) the manufacturing unit, (2) the R&D unit and (2) head office. Neither the manufacturing unit nor the R&D unit generate external revenue, All manufacturing sales are to the export business units. Occasionally the R&D unit is successful in generating research grants. Most of the funding for the research group comes from royalties earned from the manufacturing unit.

Required 

Identify which operating segments, if any, meet the aggregation criteria of paragraph 12 of AASB 8/IFRS 8. Give reasons for your answer.

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United States Economic and political conditions Relationships between operations Proximity of operations Stable Closely linked to Canadian operations Closely linked Canada Stable. Closely related to US environment Germany Stable Australia Stable Closely linked to US operations Self-sustaining Self-sustaining Closely linked to Not close to other Not close to Canadian US operations operations to other operations operations Special risks None None Stricter regulations Small market Exchange control regulations None None None Currency risks Low Low to medium Low None Low to medium