Adohai Berhad has 8 units or segments based on product-wise. Each unit deals with different products. The revenue, profits, and the assets of each unit are as shown below: a. Based on IFRS criteria, which units are to be reported as per segmental reporting? Show your calculation for each item and each unit. b. Rank the contribution of each unit to total assets, total revenue and total profit respectively. Which segment should be focused by this company? Justify.
Adohai Berhad has 8 units or segments based on product-wise. Each unit deals with different products. The revenue, profits, and the assets of each unit are as shown below: a. Based on IFRS criteria, which units are to be reported as per segmental reporting? Show your calculation for each item and each unit. b. Rank the contribution of each unit to total assets, total revenue and total profit respectively. Which segment should be focused by this company? Justify.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Adohai Berhad has 8 units or segments based on product-wise. Each unit deals with
different products. The revenue, profits, and the assets of each unit are as shown below:
a. Based on IFRS criteria, which units are to be reported as per segmental reporting?
Show your calculation for each item and each unit.
b. Rank the contribution of each unit to total assets, total revenue and total profit
respectively. Which segment should be focused by this company? Justify.
![Unit B
Unit G
Unit A
50
Unit C
Unit D
Unit E
Unit F
Unit H
Total
Assets (RM mil.)
Revenue (RM mil.)
Profit (RM mil.)
70
40
60
89
78
52
46
485
650
870
350
800
950
750
990
590
5,950
7
4
4
5
3
3
42](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc77fc9e5-96a1-406a-8c87-27a7ecc654b2%2F1214adb8-2af6-4a05-8581-f0ad79898a8b%2Fvu9fzyq_processed.png&w=3840&q=75)
Transcribed Image Text:Unit B
Unit G
Unit A
50
Unit C
Unit D
Unit E
Unit F
Unit H
Total
Assets (RM mil.)
Revenue (RM mil.)
Profit (RM mil.)
70
40
60
89
78
52
46
485
650
870
350
800
950
750
990
590
5,950
7
4
4
5
3
3
42
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