Juniper Ltd is a listed diversified company. In preparing its financial statements in accordance with AASB 8, the chief operating officer has identified three operating segments: construction, retail and transport. Details concerning each operating segment are provided in the tables below:
|
|
Total Sales
$
('000)
|
Profit before tax
$
('000)
|
Assets
$
('000)
|
|
Construction
|
75
|
3
|
500
|
|
Retail
|
315
|
-20
|
3 125
|
|
Transport
|
375
|
35
|
2 500
|
|
Head Office
|
0
|
0
|
125
|
|
|
Depreciation
$
('000)
|
Other Non
Cash Expenses
$
('000)
|
Liabilities
$
('000)
|
Capital
Acquisitions
$
('000)
|
|
Construction
|
10
|
15
|
2 000
|
65
|
|
Retail
|
30
|
20
|
1 250
|
125
|
|
Transport
|
25
|
25
|
3 000
|
250
|
Additional Information
- Sales are primarily to external parties with the exception of $50 000 external sales made to Construction from the Transport segment. These sales generated a profit amounting to $10 000. All inter-segment liabilities have been paid and any materials sold between the segments have since been sold externally.
- There are no investments in associates.
- The income tax expense for the year is $10 000.
- There are no extraordinary items.
- Unallocated corporate assets total $75 000.
- Unallocated corporate liabilities amounted to $150 000.
- Unallocated corporate expenses amounted to $35 000.
Required
(i) In accordance with the relevant accounting standard, identify the reportable business segments showing all calculations.
(ii) What do you consider are the advantages of providing segment information to external users?