Required:
In compliance with MFRS 8: Operating Segments:

a) Create a table with headers as shown below to list down the percentages of all operating segments.

Operating segments

Revenue test (%)

Asset test (%)

Please round up the answers you get to one decimal point where applicable.

 

 

b) Ascertain Kaba Berhad's reportable segments using revenue and asset tests and the 75% constraint.

Transcribed Image Text:

Kaba Berhad has ten operating segments: Segments A B H Property Plant Hospitality-Thailand Customer service Finance Logistics Food services Hospitality- Malaysia Information Technology Hospitality- Indonesia Total Revenue External Internal (RM'000) (RM'000) 220 175 60 90 70 60 38 1,000 50 5 4.5 20 30 20 3 4 60 3.5 200 Total assets (RM'000) 280 510 150 400 35 190 25 160 120 130 2,000 Kaba Berhad has ten operating segments: Segments A B H Property Plant Hospitality-Thailand Customer service Finance Logistics Food services Hospitality- Malaysia Information Technology Hospitality- Indonesia Total Revenue External Internal (RM'000) (RM'000) 220 175 60 90 70 60 38 1,000 50 5 4.5 20 30 20 3 4 60 3.5 200 Total assets (RM'000) 280 510 150 400 35 190 25 160 120 130 2,000

Answer rating: 100% (QA)

a The revenue test percentage for each segment is calculated as External Revenue Total External Revenue 100 and the asset test percentage is calculated as Total Assets Total Assets of all segments 100 ... View the full answer