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.© BrainMass Inc. brainmass.com June 4, 2020, 1:27 am ad1c9bdddf
The criteria is that segment are identified based on how management distinguishes between segments for internal reporting purposes. The objective is to provide external ...
The rule is given and answer selected based on this rule.