Tarry Ltd has four segments (Construction, Building Supplies, Information Technology and Agriculture) that the chief operating decision
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 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.
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng