What is Reportable segment?
In short
A reportable segment is an operating segment that a public company must report separately because it meets one of the 10% quantitative thresholds for revenue, profit or loss, or assets.
Key takeaways
- Revenue test: 10% of combined revenue, including sales to other segments.
- Profit or loss test: 10% of the greater of combined profits of profitable segments or combined losses of loss-making segments.
- Reportable segments must together account for at least 75% of external revenue; if not, more segments are added.
Where it's tested
FAR: Public Company Reporting, Segments & Interim Reporting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An operating segment must be separately reported if it meets a quantitative threshold based on: