Financial accounting q-29 Question:Under what circumstances does segment reporting becomemandatory?a) Only when a company has foreign operationsb) When a company operates in distinctly different businessareasc) When requested by shareholdersd) During quarterly reporting only

Explanation of Segment Reporting: Segment reporting is a method of presenting financial information…

Answered: Question: Under what circumstances does…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 32GI

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Obtain the most recent annual reports for the company BP plc and British American Tobacco p.l.c . Examine the segmental disclosures provided in the segment notes of the annual reports of the two companies and comment on the following: i. Based on extracts from the segment notes, · how much and what segmental information is provided in the segment notes? · discuss whether the companies are in compliance with the relevant accounting standard, and · discuss the similarities and differences between their disclosure practices. ii. Comment on whether the information is useful and sufficient to allow shareholders to make informed investment decisions. iii. Discuss the implications of your analysis and findings, such as policy implications.
How much revenues from major customers will MILKTEA disclose as part of its entity-wide disclosures on its notes to financial statements for the year ended December 31, 2021 in accordance with IFRS 8, Operating Segments?
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Which principle states that a company should use the same accounting methods from period to period? a) Revenue Recognition Principle b) Matching Principle c) Consistency Principle d) Full Disclosure Principle
What type of segment information must companies provide in interim financial statements?
A. Select a publicly-traded company that is traded on U.S. exchange. Locate the annual report for at least the last three fiscal years. Analyze the financial statements for the company and review for large movements in specific accounts from one year to the next. In addition, review the notes to the financial statements as these are an integral part of the financial reporting package. Evaluate the balance sheet to determine if there are large changes in the company's assets, liabilities, or equity accounts. In addition, analyze the income statement and statement of cash flows.B. At a minimum, calculate the following ratios for two years, the debt-to-equity ratio, current ratio, quick ratio, return on equity, and net profit margin. For each ratio, explain what the ratio tells you about the company.
Which of the following statements is not true under U.S. GAAP?a. Operating segments can be determined by looking at a company’s organization chart.b. Companies must combine individual foreign countries into geographic areas to comply with the geographic area disclosure requirements.c. Companies that define their operating segments by product lines must provide revenue and asset information for the domestic country, for all foreign countries in total, and for each material foreign country.d. Companies must disclose total assets, investment in equity method affiliates, and total expenditures for long-lived assets by operating segment.
Which of the following statements regarding the consistency concept is not true? Select one: A. The objective of the consistency concept is to facilitate comparison between one period and another B. A selected accounting method must be used consistently every year C. A company cannot change the selected accounting method once it is used D. If inconsistency is found, the company must provide full explanation in the Statement of Profit or Loss and Other Comprehensive Income itself, or in the Statement of Financial Position, or in the notes to the accounts
What determines whether an event is reflected in financial statements according to accounting principledMultiple Choice The event's significance to the company's reputationThe event's complexity and potential impact on competitorsThe event's ability to be reliably measured in monetary termsThe event's inclusion in the annual report to stockholders
IFRS requires companies to use which method for reporting changes in accounting policies? a. Cumulative effect approach. b. Retrospective approach. c. Prospective approach. d. Averaging approach.
in the uniteUnited states the issuance of a new accounting standard by the FASB is preceedepreceded by a lengthy public discussion sometimes, companies need accounting guidance NOW for new issues as they arise. Which organization did the FASB establish to provide temporary, immediate guidance on these new issues as they arise?
How can diff erences in accounting methods aff ect fi nancial ratio comparisons between companies, and what are some adjustments analysts make to reported fi nancials to facilitatecomparability among companies.

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Question: Under what circumstances does segment reporting become mandatory? a) Only when a company has foreign operations b) When a company operates in distinctly different business areas c) When requested by shareholders d) During quarterly reporting only