Question 01 Miracle is a listed entity which prepares consolidated financial statements in accordance with International Financial Reporting Standards (IFRS). The company manufactures and sells electronic home appliances. The management of the company have identified operating segments based on geographical location. Information for these segments is provided below. Segment External revenue ($) Internal revenue (S) Profit/loss (S) Asset (S) Middle East East Asia South Asia North America South America Europe 600,000 1.050,000 225,000 1,000,000 350,000 429,000 400,000 450,000 25,000 250,000 250,000 375,000 37,500 250,000 (17.500) 143,000 8,400,000 13,860,000 2,940,000 8,400,000 2,100,000 6,300,000 221,000 TOTAL 3,654,000 1,346,000 1,038,000 42,000,000 Assume you are part of the accounting team at Miracle PLC, A. Evaluate which segments must be reported according to IFRS 87 Show workings clearly. B. After going through the report submitted by you stating the reportable segments of the Miracle PLC, the CEO had sent you an email requesting to explain the procedure you have used to identify the reportable segments. Prepare a report explaining the quantitative threshold of identifying an operating segment based on your answer for question A