Flashcards in Segment Reporting Deck (9)
GAAP requires ______ by major segment to allow for assessment.
An ______ _______ is a significant component of operations that generates revenue and expenses, has a chief operating decision maker, and provides financial information about its operations.
All operating segments are reportable segments. TF
What is a reportable segment?
An operating segment that meets ANY threshold of:
(1) 10% or greater of its combined revenues
(2) 10% or greater than the highest absolute P or L between the segments
(3) or 10% or greater of the COMBINED assets of all operating segments.
(4) The 75% revenue rule: (sales to unaffiliated customers/consolidated revenues) must be 75% or greater of consolidated revenues
Generally the max amount of reportable segments is ___?
If a single buyer account contributes greater than 10% of revenue to a firm's total revenue, that must be disclosed. TF
What info should a public company present about revenues from foreign operations?
SEPARATE disclosures of sales to customers and intracompany sales between geographical areas
If a firms identifiable assets are > 10% of the whole it is reported. TF