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Hi!
can you help me I don’t understand what does it mean when it says ”if the total external turnover reported by the operating segments identified by the size criteria is less than 75% of total entity revenue then additional segments need to be reported on until the 75% level is reached.”does it mean we have to ignore the qualitative threshold or what??? please explain to me if you get my point
Hi,
It means that once we’ve looked at all the criteria using the 10% test we then need to look at what is to be disclosed and check that we have reported enough external revenue, for which the standard uses a 75% threshold level.
So if we had to disclose 5 segment but when we totaled up all their external revenue, it made up anything less that 75% we would have to disclose more segments until we meet this additional threshold test.
Thanks
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