Question

Required information [The following information applies to the questions displayed below) Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands): Red $1,817 Blue $ 818 Segments Green Pink 520 5315 Black $ 127 White $ 105 22 115 Sales to outside parties Intersegment revenues Salary expense Rent expense Interest expense Income tax expense (savings) 620 385 318 323 172 55 (92) (70) Consider the following questions independently. None of the six segments has a primarily financial nature What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? Enter your answer in dollars but not in thousands.) & Answer is complete but not entirely correct. Minimum revenues $ 427

Answer 1

As per IFRS 8, One of the criteria for an operating segment should be seperately reported if reported revenue(external and inter-segment) is 10% or more of the combined revenue of all operating segments
Total Revenue of all segments (External and internal sales) =4266
Minimum revenue for any segment to be of significant size to require disaggegated disclosure = 4266 * 10% = 426.6
So, as per this criteria red, blue, green should be seperately disclosed