Glorious Food Ltd has 3 business segments: Baby Product, Farm Food and Holiday Food. The business segment information for the year ended 30 June 2020 is given as follows:

 

Required: 

a) Calculate the reporting thresholds for revenue, results and assets according to AASB 8 Operating Segments. Show all your workings. A table is not required. 

b) Using your calculations in a) above, discuss which segments are reportable operating segments and explain the reason why, according to AASB 8 Operating Segments. Provide an overall conclusion in your answer.

c) Calculate and explain whether the 75% revenue benchmark test has been satisfied. Include workings in your answer.

Transcribed Image Text:

Segment Baby Product Farm Food Holiday Food Total Revenue ($) Total 1 090 000 132 000 118 000 1 340 000 External 920 000 90 000 87 000 1 097 000 Internal 170 000 42 000 31 000 243 000 Profit/(Loss) ($) Assets ($) 320 000 (20 000) (70400) 230 000 2 100 000 250 000 450 000 2 800 000 Segment Baby Product Farm Food Holiday Food Total Revenue ($) Total 1 090 000 132 000 118 000 1 340 000 External 920 000 90 000 87 000 1 097 000 Internal 170 000 42 000 31 000 243 000 Profit/(Loss) ($) Assets ($) 320 000 (20 000) (70400) 230 000 2 100 000 250 000 450 000 2 800 000

Answer rating: 100% (QA)

ANSWER A CALCULATION OF REPORTING THRESHOLD REVENUE 10 OF TOTAL REVENUE 10 OF 1340000 134000 SEGMENT... View the full answer