Exercise 18.2 ★ ★ AGGREGATING OPERATING SEGMENTS Company B is a listed manufacturing company. It produces most of its products in Australia but exports 90% of these products to the United States, Canada and Germany. It has only one main product line: scientifi c equipment. Company B is organised internally into two main business units: local and export. The export business unit is in turn divided into two sub-units: North America and Germany (North America includes Canada). Each business unit reports separate fi nancial and operational information to the chief executive offi cer (CEO) and chief fi nancial offi cer (CFO) who are identifi ed as the CODM. The results of the two business units are then aggregated to form the consolidated fi nancial information. Details of the identifi ed operating segments are as follows:

United States Canada Germany Australia Economic and political conditions Stable Stable. Closely related to US environment Stable Stable Relationships between operations Closely linked to Canadian operations Closely linked to US Operations Self-sustaining Self-sustaining Proximity of operations Closely linked to Canadian operations Closely linked to US operations Not close to other operations Not close to other operations Special risks None None Stricter regulations Small market Exchange control regulations None None None None Currency risks None Low Low Low to medium Required Identify which operating segments, if any, meet the aggregation criteria of IFRS 8 paragraph 12. Give reasons for your answer.

United States Canada Germany Australia Economic and political conditions Stable Stable. Closely related to US environment Stable Stable Relationships between operations Closely linked to Canadian operations Closely linked to US Operations Self-sustaining Self-sustaining Proximity of operations Closely linked to Canadian operations Closely linked to US operations Not close to other operations Not close to other operations Special risks None None Stricter regulations Small market Exchange control regulations None None None None Currency risks None Low Low Low to medium Required Identify which operating segments, if any, meet the aggregation criteria of IFRS 8 paragraph 12. Give reasons for your answer.