Exercise 18.5 ★ ★ REPORTABLE SEGMENTS, ALLOCATING AMOUNTS TO SEGMENTS Company A is a listed diversifi ed retail company. Its stores are located mainly in Australia. It has three main types of stores: general department stores, liquor stores and specialist toy stores. Each of these stores has different products, customer types and distribution processes. Company A has three business units: general department stores, liquor stores and specialist toy stores. For the year ended 30 June 2013 each business unit reported the following fi nancial information to Company A’s CODM: General department stores $m Liquor stores $m Toy stores $m All segments $m Revenue 400 100 50 550 Segment result (profi t) 15 7 4 26 Assets 900 200 100 1 200 All three business units earn their revenue from external customers. Total consolidated revenue of Company A for the year ended 30 June 2013 is $800 million. Included in general department stores’ revenue is $50 million of revenue from toy stores. As at the end of the reporting period toy stores owed general department stores $45 million. This amount is included in general department stores’ assets. Within the general department stores business unit there are fi ve different legal entities including legal entities Y and Z. As at 30 June 2013 legal entity Z owed $23 million to legal entity Y. These amounts have not been eliminated in determining the assets of the general department stores segment. Inter-segment asset balances are reported to the CODM but are not used by the CODM as the basis for determining reportable segments. Intra-segment assets are reported to the CODM and are eliminated in determining reportable segments.