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Sir in the lecture regarding disclosure of OG, what do you mean by internal and external revenue??
Sir video on IFRS 8 needs to be updated.
You said that if the reported profits is greater that 10% of total profits then it(Operating segment) must be disclosed.However the actual standard says something like this:
“Its reported profit or loss is 10% or more of the greater, in absolute amount, of (i) the combined profit of all operating segments that did not report a loss and (ii) the combined loss of all operating segments that reported a loss or.”One more thing is should be 10% or more, not above 10%.
Internal = inter-company (within a group)
External = sale outside the group
So, although internal sales are eliminated on consolidation, they are still disclosed in the operating segment note.We will take on board your points about the on-line lecture
Sir but does these two mean the same?
If the reported profits is greater that 10% of total profits then it(Operating segment) must be disclosed.
However the actual standard says something like this:
“Its reported profit or loss is 10% or more of the greater, in absolute amount, of (i) the combined profit of all operating segments that did not report a loss and (ii) the combined loss of all operating segments that reported a loss or.”So does the above two criteria mean the same?
Strictly speaking you need to add up:
1. All the profits of the segments in profit
2. All the losses of the segments in lossThen take 10% of the greater number.
Then compare this figure to the profit or loss of the segment that you are considering
Bear in mind that segmental reports will be tested in an interpretation question – so you don’t need to spend time worrying too much about how they are constructed
Just remember 10%!
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