Wynne Corp. and its divisions are engaged solely in manufacturing operations. The following data (consistent with prior years' data) pertain to the industries in which operations were conducted for the year ended December 31, 2004.
Revenue Profit Assets
A $8,000,000 $1,320,000 $16,000,000
B 6,400,000 1,120,000 14,000,000
C 4,800,000 960,000 10,000,000
D 2,400,000 440,000 5,200,000
E 3,400,000 540,000 5,600,000
F 1,200,000 180,000 2,400,000
$26,200,000 $4,560,000 $53,200,000
Instructions: Identify which segments would be reportable segments for Wynne Corp?
All but Division F are reportable. See attached.
Which Segments Are Reportable?
The enterprise's reportable segments are its business and geographical segments for which a majority of their revenue is earned from sales to external customers and for which: [IAS 14.35]
A) revenue from sales to external customers and from transactions with other segments ...
The solution identifies which segments would be reportable segments for Wynne Corp.