1. ABC Co. has identified the following five operating segments: "Credit," "Hotel," "Transportation," "Grocery," and "Events planning." ABC Co. treats the "Hotel" and "Events planning" as a single segment for internal reporting purposes. Each of the "Events planning" and "Transportation" segments does not qualify under any of the quantitative thresholds of PFRS 8. How should ABC Co. disclose its reportable segments?

a. ABC Co. shall treat each of the "Hotel," "Credit," and "Grocery" as reportable segments. The other segments should not be disclosed.

b. ABC Co. shall treat each of the "Hotel," "Credit," and "Grocery" as reportable segments. The other segments should be combined and disclosed in the "All other segments" category.

c. ABC Co. shall treat the "Hotel" and "Events planning" as a single reportable segment and each of the "Credit" and "Grocery" segments also as reportable segments. The "Transportation" segment shall be included in the "All other segments" category.

d. ABC Co. shall treat the "Hotel" and "Events planning" as a single reportable segment and combine all the other segments and report them under the "All other segments" category.

2. An entity recently has acquired a new brand from a competitor company. The brand qualifies as a component of an entity and represents a major line of business for which discrete financial information is available. This operating segment does not meet any of the threshold criteria for a reportable segment. Furthermore, this segment is unique and does not share similar characteristics with the other operating segments of the entity. Which of the following statements is correct?

a. The entity can disclose this new segment separately if it is a distinguishable component and is used by management in internal reporting even though it does not meet the PFRS criteria.

b. The entity cannot voluntarily disclose this new segment separately because PFRS 8 discourages voluntary disclosure of operating segments. Operating segments are reportable only if they either result from aggregation or qualify under any of the quantitative thresholds.

c. The entity can disclose this new segment separately only if it can be aggregated with another operating segment and the combined segment qualifies in all of the quantitative thresholds.

d. The entity can disclose this new segment separately only if it can be aggregated with another operating segment and the combined segment qualifies in any of the quantitative thresholds.

3.According to PFRS 8, a reportable operating segment is one which

a. management uses in making decisions about operating matters.

b. results from aggregation of two or more segments and qualify under any of the quantitative thresholds.

c. a and b

d. none of these