Zeeshan Limited (ZL), a listed company, is engaged in 'spinning', 'weaving', 'knitting', 'dyeing' and 'home textile'...

 

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Zeeshan Limited (ZL), a listed company, is engaged in 'spinning', 'weaving', 'knitting', 'dyeing' and 'home textile' businesses. Result of each business segment for the year ended June 30, 2018 are as follows: Business Segments Spinning Weaving Knitting Dyeing Home Textile Sales Gross Operating Expenses Profit 20.000 1.800 0.800 5.500 0.825 3.000 0.420 3.200 2.500 34.200 0.384 0.200 3.629 Rs. in billion Assets Liabilities 15.000 0.750 4.000 0.250 1.200 0.075 4.500 0.125 2.500 0.150 1.350 2 of 6 0.275 0.220 0.175 0.100 1.570 27.200 Inter-segment sales by 'spinning' to weaving' and 'knitting' is Rs. 2 billion and Rs. 0.70 billion respectively and by weaving' to 'dyeing' is Rs. 1.5 billion. 'Spinning' inter-segment sales have been sold at 9% margin and that of 'weaving' at 15% margin. Operating expenses, assets and liabilities amounting to Rs.0.5 billion, Rs. 0.25 billion and Rs. 0.1 billion respectively, have not been allocated to any segment. Required: In accordance with the requirements of IFRS 8-Operating Segments: (i) Determine the reportable segments of ZL. (ii) Show how these reportable segments would be disclosed in ZL's financial statements for the year ended June 30, 2018. Zeeshan Limited (ZL), a listed company, is engaged in 'spinning', 'weaving', 'knitting', 'dyeing' and 'home textile' businesses. Result of each business segment for the year ended June 30, 2018 are as follows: Business Segments Spinning Weaving Knitting Dyeing Home Textile Sales Gross Operating Expenses Profit 20.000 1.800 0.800 5.500 0.825 3.000 0.420 3.200 2.500 34.200 0.384 0.200 3.629 Rs. in billion Assets Liabilities 15.000 0.750 4.000 0.250 1.200 0.075 4.500 0.125 2.500 0.150 1.350 2 of 6 0.275 0.220 0.175 0.100 1.570 27.200 Inter-segment sales by 'spinning' to weaving' and 'knitting' is Rs. 2 billion and Rs. 0.70 billion respectively and by weaving' to 'dyeing' is Rs. 1.5 billion. 'Spinning' inter-segment sales have been sold at 9% margin and that of 'weaving' at 15% margin. Operating expenses, assets and liabilities amounting to Rs.0.5 billion, Rs. 0.25 billion and Rs. 0.1 billion respectively, have not been allocated to any segment. Required: In accordance with the requirements of IFRS 8-Operating Segments: (i) Determine the reportable segments of ZL. (ii) Show how these reportable segments would be disclosed in ZL's financial statements for the year ended June 30, 2018.

Answer rating: 100% (QA)

DETERMINE THE REPORTABLE SEGEMENT Reportable segments IFRS 8 requires an entity to report financial and descriptive information about its reportable segments Reportable segments are operating segments ... View the full answer