Question

Brad International Company has total assets of $130,000 at the end of 2019 and the                                                                                                           

following condensed income statement for the year ended December 31, 2019:                                                                                                 

                Sales                                                               $90,000                                              

                Operating Expenses                                        $(66,600)                                           

                Income before income taxes $23,400                                               

                Income tax Expense                                        $(7,020)                                              

                Net Income                                                      $16,380              

The company has two reportable operating segments and has developed the following related information:

Segment A       Segment B   Others            Total

$        51,420	$    24,400	$ 14,180	$    90,000
$        36,780	$    15,400	$ 10,420	$    62,600
$        70,300	$    28,740	$ 21,960	$ 121,000

Sales                                                                     

Operating Expenses

Segment Assets

Of the $66,600 of corporate operating expenses, $4,000 are general corporate expenses. Income taxes are not allocated to segments either. Of the $130,000 of corporate assets, $9,000 are general corporate assets.

Required: Prepare the segment disclosures that would appear in the notes. This would include a schedule for segment revenue, profit, and assets as well as all required reconciliation schedules.

Answer 1

While preparing segment report, all reportable segments and other segments taken together shall be disclosed

Segment disclosures that would appear in the notes :-

Particulars	Segment A ($)	Segment B ($)	Others ($)	Total ($)
Segment Revenue	51,420	24,400	14,180	90,000
Segment Result
Operating profit	14,640	9,000	3,760	27,400
General corporate expenses				(4,000)
Income tax expense				(7,020)
Profit after Tax				16,380
Segment Assets	70,300	28,740	21,960	121,000
General corporate Assets				9,000
Total Assets				130,000

Other information that will be disclosed :-

1. Segment Liabilities
2. Segment Capital expenditure during the year
3. Segment Depreciation
4. Segment other than cash expenditure