Question: Save Answer Segment reporting: Sun City Tour Ltd has 3 business segments: Backpackers, VIP and Merchandise. The business segment information for the year ended 30

 Save Answer Segment reporting: Sun City Tour Ltd has 3 business

segments: Backpackers, VIP and Merchandise. The business segment information for the year

Save Answer Segment reporting: Sun City Tour Ltd has 3 business segments: Backpackers, VIP and Merchandise. The business segment information for the year ended 30 June 2022 is given as follows: Revenue ($) Profit/(Loss) ($) Assets ($) Backpacker 2 090 000 420 000 3 100 000 VIP 1 132 000 (30 000) 250 690 Merchandis 118 000 (70 000) 450 000 Total 3 340 000 320 000 3 800 000 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. (5 marks) 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. (9 marks) c) Calculate and explain whether the 75% revenue benchmark test has been satisfied. Include workings in your answer. (2 marks)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!