Lemon Berhad, a Malaysian listed company, has diversified businesses. The company has financial year-end on 31 December annually. The company has four operating segments, as follows

Segment

A= sugar manufacturing

B= Candy manufacturing

c= charcoal supplies

D= Logistic services

The accountant of Lemon Berhad is disclosing three reportable segments. The operating segments A and B are aggregated as a single reportable segment. They are aggregated based on the similar nature of the manufacturing process.

For segment A, the manufacturing contract is awarded by the Ministry of Domestic Trade. The manufacturing contract will be awarded based on the open tender and bidding process. The ministry will pay Lemon Berhad for the sugar manufactured by Lemon Berhad. The sugar price is determined by the Ministry.

For segment B, the price of the manufactured candy is set by Lemon Berhad. The customers pay directly to Lemon Berhad for every purchase of candies.

REQUIRED:

Using the MFRS 8: Operating Segments, assess how the reportable segments should be presented in the financial statement.

Answer rating: 100% (QA)

The three report able segments should be presented as follows Seg ment A s ugar manufacturing This s... View the full answer