CA Mrinal Gunjan (CA) (131 Points)
11 May 2010hey guys reason this question.
An enterprise having 2 divisions.Division A meets all criteria ( nearly 93% ) for segment reporting. The rest is covered by segment B. Now my question is Does segment reporting aplly to the enterprise? Do we need to report the segment revenue of div B??
AS-17 apply to consolidated financial statement if entity prepare consolidated FS.
and not to stand alone FS.
hence if entity prepare stand alone FS only then it will apply to Stand alone FS.
any segment become reportable segment if it qualifies any of the following method..
method 1. limit methd:- if any segment qualify any of following limit then such segment become reportable seg.
Limit A segment revenue is 10% or more of total segment revenue
Limit B segment result is 10% or more of total segment result.
Limit C segment asset are 10% or more of segment asset.
Method 2. any segment become reportable by the choice of management.
Method 3 if any segment become reportable in previous year because it had qualified any limit, then it would be reportable in current year also.
So according to your question A is reportable segment but B can become reportable in current year either by choice of management or it had qualified any of limit in previous year.
CA Rahul Khatter
(Chartered accountant)
(97 Points)
Replied 18 May 2010
in such a situation only management thinks tht b segment should be reportable ..
than it covers under operating segment which is reporatble....
daya shankar singh
(CA ,CS)
(629 Points)
Replied 18 May 2010
As per AS17on Reportable Segment, this AS is applicable on Consolidated financial statement
If Company prepare CFS, then management may by choice report segment B
CAclubindia
