The following was extracted from the accounting records of C Limited for the year ended 31 December
Question:
The following was extracted from the accounting records of C Limited for the year ended 31 December 2017 (this was the only information given to the Chief Operating Decision Maker):
Segment A $ | Segment A $ | Head office $ | |
sales | 10,650,000 | 12,400,000 | - |
Profit/(loss) before tax | 5,565,000 | 6,124,000 | (633,000) |
Income tax expense | (1,474,200) | (1,714,720) | 177,240 |
Profit/(loss) after tax | 4,090,800 | 4,409,280 | (455,760) |
Note; information of segments A & B is to be disclosed.
Notes
1. Segment B sold goods to the value of P500 000 to Segment A.
2. Segment A sold all the goods to external customers and therefore had no stock on hand
3. Profit of Segment A includes a dividend received from Segment B of P300 000
4. Profit of Segment A includes interest paid on loan from Segment B of P50 000. Segment B accounted for P50 000 as interest received.
5. The tax rate was 28%
The following is an extract from the financial statements of C Limited
$
Revenue 22,550,000
Profit before tax 10,756,000
Income tax expense 3,011,680
Profit after tax 7,744,320
Required:
Prepare the segment information of C Limited as it would appear in the notes for the year ended 31 December 2017. Your answer should comply with IFRS 8.
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott