he following information pertains to Sheffield Corp. and its divisions for the year ended December 31, 2021.Sales to unaffiliated customers$3960000Intersegment sales of products similar to those sold to unaffiliated customers910000Interest earned on loans to other operating segments60000Sheffield and all of its divisions are engaged solely in manufacturing operations. Sheffield has a reportable segment if that segment's revenue exceeds$487000.$402000.$396000.$493000.

Segment reporting is the reporting of the operating segments of a company in the disclosures accompanying its financial Statements. As per IFRS 8, an operating segment has to report its financial information separately, in case a segment meets some quantitative limits: Reported revenue is 10% or more of the combined revenue of all operating segments. Reported profit or loss is 10% or more in absolute amount i.e. combined profit of all segments that reported profit or combined loss of all segments that reported loss. Its assets are 10% or more of the combined assets of all operating segments.Working: Answer: Note: Note: The $60,000 interest would not be included in the combined revenue because it is not controllable at the division level. Answer: Option a) $487,000

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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he following information pertains to Sheffield Corp. and its divisions for the year ended December 31, 2021.

Sales to unaffiliated customers	$3960000
Intersegment sales of products similar to those sold to
	unaffiliated customers	910000
Interest earned on loans to other operating segments	60000

Sheffield and all of its divisions are engaged solely in manufacturing operations. Sheffield has a reportable segment if that segment's revenue exceeds

$487000.

$402000.

$396000.

$493000.

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