Asked by Yesenia Lazarte on May 07, 2024
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Assuming the three business units below are operating segments and all revenue earned are from external customers, in which of the following scenarios does Bromwell Ltd need to identify another reportable segment to be disclosed? Revenue in $000 Toby Bailey Ron Total operating segments Other business units Total Bromwell Ltd I. 15032064011105001610 II. 22028055010503501400 III. 46050075017106302340\begin{array}{|l|r|r|r|r|r|r|}\hline \begin{array}{l}\text { Revenue } \\\text { in } \$ 000\end{array} & \text { Toby } & \text { Bailey } & \text { Ron } & \text { Total operating segments } & \begin{array}{c}\text { Other business } \\\text { units }\end{array} &{\begin{array}{c}\text { Total } \\\text { Bromwell } \\\text { Ltd }\end{array}} \\\hline \text { I. } & 150 & 320 & 640 & 1110 & 500 & 1610 \\\hline \text { II. } & 220 & 280 & 550 & 1050 & 350 & 1400 \\\hline \text { III. } & 460 & 500 & 750 & 1710 & 630 & 2340 \\\hline\end{array} Revenue in $000 I. II. III. Toby 150220460 Bailey 320280500 Ron 640550750 Total operating segments 111010501710 Other business units 500350630 Total Bromwell Ltd 161014002340
A) I only.
B) I and II.
C) I and III.
D) II and III.
Reportable Segment
A component of an enterprise for which separate financial information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources.
External Customers
Individuals or entities that purchase goods or services from a company but are not part of the company itself.
Revenue
Income arising in the course of an entity’s ordinary activities.
- Implement the numerical criteria for identifying segments that require reporting.
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Learning Objectives
- Implement the numerical criteria for identifying segments that require reporting.
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