Question - Segmented Reporting
Cineplex Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2011.
|
|
A
|
B
|
C
|
D
|
E
|
|
Sales
|
$40,000
|
$75,000
|
$580,000
|
$35,000
|
$55,000
|
|
Cost of goods sold
|
19,000
|
50,000
|
270,000
|
19,000
|
30,000
|
|
Operating expenses
|
10,000
|
40,000
|
235,000
|
12,000
|
18,000
|
|
Total expenses
|
29,000
|
90,000
|
505,000
|
31,000
|
48,000
|
|
Operating profit (loss)
|
$11,000
|
$(15,000)
|
$75,000
|
$4,000
|
$7,000
|
|
Identifiable assets
|
$35,000
|
$80,000
|
$600,000
|
$65,000
|
$50,000
|
Sales of segments B and C included intersegment sales of $20,000 and $100,000, respectively.
Instructions -
(a) Determine which of the segments are reportable based on the:
(1) Revenue test.
(2) Operating profit (loss) test.
(3) Identifiable assets test.
(b) Prepare the necessary disclosures required by GAAP.