The Chief Operating Decision Maker (CODM) of Biskit Pty Ltd share the following information reported to him by several segments of its subsidiary for the year ended 31 December 2021:

	SALES	PROFIT	LOSS	ASSETS
	P	P	P	P
Cookies	350 000	150 000	-	250 000
Chocolates	250 000	-	175 000	500 000
Nuts	1,150 000	-	500 000	750 000
Croissants	450 000	-	225 000	300 000
Danish	400 000	100 000	-	500 000
Rusks	2 000 000	1 350 000	-	500 000
	4 600 000	1 600 000	900 000	2 800 000

a. Required:

From the above information indicate in line with IFRS 8 which segments will be reportable in quantitative Thresholds. (5 marks)

b. Reconciliation Note

The CODM supplied further information extracted from the accounting records of Biskit Pty Ltd for the year ended 31 December 2021.

	Cookies Segment	Chocolate Segment	Head Office
	P	P	P
Sales	5,325,000	6,200,000	-
Profit/(loss) before tax	2,783,000	3,062,000	(316,500
Income tax expense	(737,100)	(857)	88,620
Profit/(loss) after tax	2,045,900	2,204,640	(227,880)

Note: Information of Cookies and Chocolates segments is to be disclosed

1) Chocolates segment sold goods to the value of P250 000 to Cookies Segment.

2) Cookies Segment sold all the goods to external customers and therefore had no stock on hand

3) Profit of the Cookies Segment includes a dividend received from the Chocolate Segment of P150 000

4) Profit of the Cookies Segment includes interest paid on loan from the Chocolate Segment of P25 000. Chocolates

The segment accounted for P25 000 as interest received.

The following is an extract from the financial statements of Biskit Pty Ltd

Income P 11,025,000

Profit before tax P 5,378,000

Income tax expense P 1,505,840

Profit after tax P 3,872,160

Required: 

Using IFRS 8 requirements prepare the segment information of Biskit Pty Ltd as it would appear in the notes for the year ended 31 December 2021

Answer rating: 100% (QA)

a From the above information the segments that will be reportable in quant... View the full answer