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Segment reporting - Coggle Diagram
Segment reporting
Operating segment
That engages in business activities
Whose results are regularly reviewed
It is a component of an equity:
For which discrete financial info is available
Retail + Banking + Other = Total
Agreggation
Two or more op segments can be reported as a single op segment
They have similar economic characteristics
Similar distribution methods
Products/services they sell are similar
Similar types of customers
Similar production processes
Europe, Asia, America, etc
Quantitative thresholds
75% rule
After 10% rule is applied
Disclose other segments so that at least 75% of external revenue is reported.
10% rule
Revenue (internal & external sales) > 10% of total revenue of all segments
Assets are 10% more of the total assets of all segments
Qualitative thresholds on the aggregated op segments
Profit / loss is 10% or more of HIGHER:
Combined profit of all profit-making segments
Combined loss of all loss-making segments
Disclosure
Other amounts should be disclosed if regularly provided to chief operating decision maker.
Profit or loss, total assets & total liabilities
For each reportable segment an entity should report: