Question: Tarry Ltd has four segments (Construction, Building Supplies, Information Technology and Agriculture) that the chief operating decision maker reviews when making assessments regarding performance and

Tarry Ltd has four segments (Construction, Building Supplies, Information Technology and Agriculture) that the chief operating decision maker reviews when making assessments regarding performance and when evaluating and making resource allocation decisions. Details concerning these segments are as follows:

Total Sales

$

Results

$

Assets

$

Construction

6 500 000

350 000

40 000 000

Building Supplies

1 200 000

180 000

17 500 000

Information Technology

350 000

- 600 000

750 000

Agriculture

150 000

20 000

100 000

Corporate Offices

-25000

35 000

Additional Information

Sales of the Building Supplies segment are primarily external and within Australia, however, included in total sales of $1,200,000 are $275,000 inter-segment sales to the Construction segment and these sales generated a profit of $25,000. Agriculture’s sales of $150,000 also included some inter-segment sales to Building Supplies of $20,000 and these sales generated a profit of $5,000.

Required

Determine which segments are reportable segments in accordance with the provisions of AASB 8. Show all workings to support your conclusions.

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