Tham khảo tài liệu 'critical financial accounting problems issues and solutions_9', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 146 Critical Financial Accounting Problems 8. Minority interest 9. Cumulative effect of changes in accounting principles The asset test requires if the segment fails both preceding tests that the identifiable assets of the segments be 10 or more of the combined segment identifiable assets. Identifiable assets include tangible and intangible assets net of valuation allowances used by the industry segment and the allocated portions of the assets used by two or more segments. Assets that are intended for general corporate purposes are excluded. The comparability test requires that the segment be reported separately if management feels such a treatment is needed to achieve interperiod comparability. The test of dominance requires that the segment not be reported separately if it can be classified as dominant. A dominant segment should represent 90 or more of the combined revenues operating profits or losses and identifiable assets and no other segment meets any of the 10 tests. The explanation test determines whether a substantial portion of an enterprise s operations is explained by its segment information. The combined total of the revenue from reportable segments must be 75 or more of all revenue from sales to unaffiliated customers. If combined revenues do not meet this test additional segments must be added until the test is met. The following example illustrates the application of operational tests. Segment Unaffiliated Revenue Intersegment Revenue Total Revenue Operating Profit Loss Identifiable Assets u 50 50 100 10 50 V 100 100 10 40 w 150 100 250 20 100 X 200 200 10 150 Y 250 50 300 100 100 z 300 300 100 80 1 050 1 250 10 520 Revenue Test 10 1 250 125 Reportable segments W X Y Z Segmental Reporting 147 Operating Profit or Loss Test 10 130 13 Reportable Segments W Y Z Because total operation profit 130 is greater than the operating loss 120 total operating profit is used as the base. Identifiable Assets Test 10 520 52 Reportable segments W X Y Z Explanation .
