Problem 10-15 (IFRS) basy Company provided the following statement of financial year: 130,000 500,000 100,000 70,000 Current assets Property, plant and equipment Goodwill Investment in associate 800,000 Total assets Current liabilities Noncurrent liabilities Share capital Retaiņed earnings Total liabilities and equity 90,000 60,000 400,000 250,000 800,000 Revenue 1,800,000 Cost of goods sold (1,200,000) Gross profit Other income Distribution cost Administrative expenses Other expenses Finance cost Share in profit of associate 600,000 60,000 ( 200,000) ( 100,000) ( 50,000) ( 60,000) 10.000 Income before tax Income tax expense. 260,000 (. 90,000) Net income 170,000 The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments. External sales Intersegment sales . Furniture Stationery Computer products Other segments 800,000 500,000 400,000 100,000 200,000 150,000 50,000 288-
Problem 10-15 (IFRS) basy Company provided the following statement of financial year: 130,000 500,000 100,000 70,000 Current assets Property, plant and equipment Goodwill Investment in associate 800,000 Total assets Current liabilities Noncurrent liabilities Share capital Retaiņed earnings Total liabilities and equity 90,000 60,000 400,000 250,000 800,000 Revenue 1,800,000 Cost of goods sold (1,200,000) Gross profit Other income Distribution cost Administrative expenses Other expenses Finance cost Share in profit of associate 600,000 60,000 ( 200,000) ( 100,000) ( 50,000) ( 60,000) 10.000 Income before tax Income tax expense. 260,000 (. 90,000) Net income 170,000 The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments. External sales Intersegment sales . Furniture Stationery Computer products Other segments 800,000 500,000 400,000 100,000 200,000 150,000 50,000 288-
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
REQUIRED:
1. Prepare the disclosures required for operating segments.
Transcribed Image Text:Problem 10-15 (IFRS)
Dasy Company provided the following statement of financial
year:
130,000
500,000
100,000
70,000
Current assets
Property, plant and equipment
Goodwill
Investment in associate
800,000
Total assets
Current liabilities
Noncurrent liabilities
Share capital
Retaiņed earnings
Total liabilities and equity
90,000
60,000
400,000
250,000
800,000
1,800,000
(1,200,000)
Revenue
Cost of goods sold.
Gross profit
Other income
Distribution cost
Administrative expenses
Other expenses
Finance cost
600,000
60,000
( 200,000)
( 100,000)
( 50,000)
( 60,000)
10.000
Share in profit of associate
Income before tax
260,000
Income tax expense.
( 90,000)
Net income
170,000
The entity is organized for management purposes into
three major operating segments, namely furniture,
stationery and computer products. There are other
smaller operating segments.
External sales
Intersegment sales.
Furniture
Stationery
Computer products
Other segments
800,000
500,000
400,000
100,000
200,000
150,000
50,000
288
Transcribed Image Text:The cost of goods sold, distribution cost, administrative
expenses and finance cost can be allocated as 50% to
furniture, 25% to stationery, 20% to computer products,
and 5% to other segments.
The cost of sales related to intersegment sales amounted
to P240,000, to be allocated as 50% to furniture, 40% to
stationery, and 10% to computer products.
The segment assets and liabilities are:
Computer
Furniture Stationery products Others
Current assets
80,000
40,000
5,000
2,000
Property, plant and
equipment
Goodwill
3,000
300,000
60,000.
100,000
30,000
85,000
10,000
Total assets
440,000
170,000
100,000
5,000
1,000
Current liabilities
Noncurrent liabilities
30,000
20,000
8,000
7,000
45,000
30,000
2,000
75,000
50,000
15,000
3,000
Total liabilities
The remaining assets and liabilities are general corporate
assets and liabilities identified with the entity as a whole.
The other income and other expenses are not allocated
to the operating segments as a measure of profit or loss.
The chief operating decision maker does not allocate
income tax expense to reportable segments as a measure
of profit or loss.
1. Determine the profit or loss for all of the operating
segments.
Required:
3. Prepare the necessary reconciliations between the
segment information and amounts shown in the entity's
financial statements.
2. Prepare the disclosures required for operating segments.
289
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