Purchase Solution

Operating profit and loss test for reportable segments

Not what you're looking for?

Ask Custom Question

When applying the operating profit and loss test to determine reportable segments, FASB 131 prescribes that costs assigned to an operating segment should:

1 reflect the reporting practices of the industry.

2 reflect the reporting practices of the company.

3 be in harmony with international accounting standards.

4 be restricted to direct traceable costs and widely accepted common costs.

Purchase this Solution
Solution Summary

The rule is given and answer selected based on this rule.

Solution Preview

The criteria is that segment are identified based on how management distinguishes between segments for internal reporting purposes. The objective is to provide external ...

Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
Recent Feedback
  • "hey just wanted to know if you used 0% for the risk free rate and if you didn't if you could adjust it please and thank you "
  • "Thank, this is more clear to me now."
  • "Awesome job! "
  • "ty"
  • "Great Analysis, thank you so much"
Purchase this Solution
Free BrainMass Quizzes
Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Motivation

This tests some key elements of major motivation theories.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

View More Free Quizzes
Related BrainMass Solutions

  • Reportable Segments

    Profit or loss test--segment profit or loss is 10 percent or more of the greater (in absolute terms) of the combined reported profit of all profitable segments or the combined reported loss of all segments incurring a loss. c.

  • Segment reporting

    A segment is deemed reportable if the absolute amount of its profit or loss is 10 percent or more of the greater, in absolute amount, of: The combined profits of all operating segments reporting profits.

  • Ridge company Segment interim reporting

    Your tutorial show you how to handle unprofitable segments in applying the 10% of profit rule (segregation process), tests for segments and then shows the 75% rule test.

  • Please explain operating segments of an enterprise. How does

    reported profit of all operating segments that did not report a loss or (2) the combined reported loss of all operating segments that did report a loss; - The segment's assets are 10% or greater of the combined assets of all operating segments.

  • test to determine which segments are separately reportable

    What is the profit or loss of each of these segments? Perform the profit or loss test to determine which of these segments is separately reportable. Here you go. Computation in Excel plus comments about how the tests work are provided.

  • SFAS 131 Operating Segments of an Enterprise

    b) The absolute amount of its reported profit or loss is 10% or more of the combined reported profit of all operating segments that did not report a loss or the combined reported loss of all operating segments that did report a loss.

  • Which segments are separately reportable?

    400807 Which segments are separately reportable? Union Products has seven operating segments.

  • Wynne Corp - Reportable Segments

    with other segments is 10% or more of the total revenue, external and internal, of all segments; or B) segment result, whether profit or loss, is 10% or more the combined result of all segments in profit or the combined result of all segments in loss

  • Segment and interim reporting MCQ

    75998 8-22 Segment and interim reporting 22. Quatro Corp. is engaged solely in manufacturing operations. The following data pertain to the operating segments for the current year.

View More Related Solutions