Question: Solve this. (Total 7 marks) (A) Ahsan Ltd. Has three business segments namely A, B and C. the total assets of the company are 10

 Solve this. (Total 7 marks) (A) Ahsan Ltd. Has three business

Solve this.

(Total 7 marks) (A) Ahsan Ltd. Has three business segments namely A, B and C. the total assets of the company are 10 million. Segment A has 2 lak, segment B has 3 lak and segment C has 5 lak. Deferred assets included in the each segment are A,0.50 lak, B0.40 lak and C,0.30 lak. Required: Are all these segments reportable or not? (4 marks) (B) A company has an inter-segment transfer pricing policy of charging at cost less 10%. The market prices are generally 25% above cost. Required: Is the policy adopted by the company correct

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