TRUE OR FALSE

1 TRUE
2 TRUE
3 TRUE
4 -
5 TRUE
6 FALSE
7 TRUE
8 FALSE
9 TRUE
10 TRUE

DISCLOSED OR NOT
1 DISCLOSED
2 DISCLOSED
3 DISCLOSED
4 DISCLOSED
5 DISCLOSED
6 DISCLOSED
7 DISCLOSED
8 DISCLOSED
9 DISCLOSED
10 DISCLOSED
11 DISCLOSED
12 DISCLOSED
13 NOT
14 NOT
15 NOT

MULTIPLE CHOICE
1 C
2 B
3 D
4 C
5 C
6 C
7 D
8 B
9 D
10 A
PROBLEM 1
A 6,600,000.00 8,000,000.00 14,000,000.00
B 5,940,000.00 6,000,000.00 21,000,000.00
C 5,280,000.00 1,800,000.00 12,600,000.00
D 8,580,000.00 (4,000,000.00) 28,000,000.00
E 19,800,000.00 (9,500,000.00) 16,800,000.00
F 19,800,000.00 (5,000,000.00) 47,600,000.00

Revenue Test
Combined revenue of operating segments 66,000,000.00
Percentage 10%
Minimum Amount of Revenue 6,600,000.00

Profit/Loss Test

Combined profit of operating segments that reported a profit 15,800,000.00

Combined loss of operating segments that reported a loss 18,500,000.00
Greater between the two 18,500,000.00
Percentage 10%
Minimum Amount of Profit/Loss 1,850,000.00

Asset Test
Combined asset of operating segments 140,000,000.00
Percentage 10%
Minimum Amount of Asset 14,000,000.00

Answers:
1.1 6,600,000.00
1.2 1,850,000.00
1.3 14,000,000.00
1.4 5

PROBLEM 2

2.1 The minimum amount of revenue to qualify as reportable segment

External revenues 1,445,000.00
Intersgment revenues 305,000.00
Combined revenue of operating segments 1,750,000.00
Percentage 10%
Minimum Amount of Revenue 175,000.00

2.2 How many nonreportable segments does LISA Company have?

Revenue Minumum
Food 905,000.00 175,000.00 Reportable
 Franchise 690,000.00 175,000.00 Reportable
Lease 155,000.00 175,000.00 Nonreportable
Only 1 segment is nonreportable

2.2 What is the minimum amount of revenue required to disclose major customer data?
Total External Revenue 1,445,000.00
Percentage 10%
Minimum amount of revenue 144,500.00

PROBLEM 3 42% 33% 25%

B C D
Sales 4,000,000.00 3,200,000.00 2,400,000.00
Operating Expenses
Traceable (2,000,000.00) (2,000,000.00) (1,400,000.00)
Not Traceable (600,000.00) (480,000.00) (360,000.00)
Profit 1,400,000.00 720,000.00 640,000.00

PROBLEM 4

A B Others
Sales 25,000,000.00 15,000,000.00 5,000,000.00
Segment Expenses (18,000,000.00) (9,000,000.00) (4,000,000.00) (2,000,000.00)
Income Tax Expense
7,000,000.00 6,000,000.00 1,000,000.00

Assets 35,000,000.00 18,000,000.00 7,000,000.00 5,000,000.00

4.1 What is the entity revenue shown in income statement ? 45,000,000.00

4.2 What is the entity net income shown in income statement ? 8,200,000.00
4.3 What is the entity total asset shown in statement of financial position? 65,000,000.00

PROBLEM 5

Branded Consumer Food (400,000.00) Reportable

Agro-Industrial (200,000.00) Reportable
Commodity Food (70,000.00) Nonreportable
Corporate Business (50,000.00) Nonreportable

Combines Loss 720,000.00

Percentage 10%
Minimum Loss 72,000.00
Answer: Branded Consumer Food & Agro-Industrial
 Total
9,600,000.00

(5,400,000.00)
(1,440,000.00)
2,760,000.00

Total
45,000,000.00
(33,000,000.00)
(3,800,000.00)
8,200,000.00

65,000,000.00
PROBLEM 1
Requirement 1.1
50% 25% 20%
Furniture Stationery Computer
External Sales 800,000.00 500,000.00 400,000.00
Intersegment Sales 200,000.00 150,000.00 50,000.00
Finance Cost (30,000.00) (15,000.00) (12,000.00)
Segment Profit (Loss) 100,000.00 164,000.00 114,000.00
Total Assets 440,000.00 170,000.00 100,000.00
Total Liabilities 75,000.00 50,000.00 15,000.00

Requirement 1.2

Revenue test 2,200,000.00 220,000.00

Profit(Loss) Test 400,000.00 40,000.00
Asset test 715,000.00 71,500.00
Major Customer Data 180,000.00

PROBLEM 2
Segment External Intersegment Total Revenue
1 620,000.00 200,000.00 820,000.00
2 100,000.00 100,000.00 200,000.00
3 200,000.00 240,000.00 440,000.00
4 190,000.00 150,000.00 340,000.00
5 180,000.00 15,000.00 195,000.00
6 140,000.00 20,000.00 160,000.00
7 120,000.00 12,000.00 132,000.00
8 180,000.00 60,000.00 240,000.00
9 180,000.00 70,000.00 250,000.00
1,910,000.00 867,000.00 2,777,000.00

REQUIREMENT 2.1
Revenue Test
Combined revenue of operating segments 2,777,000.00
Percentage 10%
Minimum Amount of Revenue 277,700.00

Profit/Loss Test

Combined profit of operating segments that reported a profit

Combined loss of operating segments that reported a loss
Greater between the two
Percentage
 Minimum Amount of Profit/Loss

Asset Test
Combined asset of operating segments
Percentage
Minimum Amount of Asset

Major Customer Data

Total External Revenue
Percentage
Minimum amount of revenue

REQUIREMENT 2.2

Segment External Intersegment Total Revenue

1 620,000.00 200,000.00 820,000.00
2 100,000.00 100,000.00 200,000.00
3 200,000.00 240,000.00 440,000.00
4 190,000.00 150,000.00 340,000.00
5 180,000.00 15,000.00 195,000.00
6 140,000.00 20,000.00 160,000.00
7 120,000.00 12,000.00 132,000.00
8 180,000.00 60,000.00 240,000.00
9 180,000.00 70,000.00 250,000.00
1,910,000.00 867,000.00 2,777,000.00

277,700.00

The reportable segments without regard to aggregation criteria

Segments 1, 3, 4 , 5, & 8

The reportable segments after considering all factors

External Revenue of Segments 1, 3, 4, 5, & 8

Divided by: Total External Revenue
Percentage

External Revenue of Segments 1, 3, 4, 5, & 8

External Revenue of Segments 2 & 6
Total
Divided by: Total External Revenue
Percentage

Therefore, the reportable segments after considering all factors are:

Segment 1,3,4,5,8 and 2 & 6 (combined)
 5%
Others Total
100,000.00 1,800,000.00
- 400,000.00
(3,000.00) (60,000.00)
22,000.00 400,000.00
5,000.00 715,000.00
3,000.00 143,000.00

Profit (Loss) Assets

200,000.00 400,000.00
20,000.00 80,000.00
70,000.00 300,000.00
50,000.00 140,000.00
(25,000.00) 180,000.00
10,000.00 120,000.00
(20,000.00) 140,000.00
(35,000.00) 120,000.00
(25,000.00) 140,000.00
1,620,000.00

350,000.00
105,000.00
350,000.00
10%
 35,000.00

1,620,000.00
10%
162,000.00

1,910,000.00
10%
191,000.00

Profit (Loss)
200,000.00
20,000.00
70,000.00
50,000.00
(25,000.00)
10,000.00
(20,000.00)
(35,000.00)
(25,000.00)

35,000.00

1,370,000.00
1,910,000.00
72%

1,370,000.00
240,000.00
1,610,000.00
1,910,000.00
84%