Which of the following is not a quantitative threshold for defining a segment’s materiality? Segment assets are 10% or more of the combined assets of all operating segments. The segment absolute value of its profit or loss is 10% or more of the greater of (1) the combined reported profit of all operating segments that reported a profit or (2) the absolute value of the combined reported loss of all operating segments that reported a loss. Segment reported revenue, including intersegment revenues, is 10% or more of the combined revenue of all operating segments. Segment residual profit after the cost of equity is 10% or more of the combined residual profit of all operating segments.
Which of the following is not a quantitative threshold for defining a segment’s materiality? Segment assets are 10% or more of the combined assets of all operating segments. The segment absolute value of its profit or loss is 10% or more of the greater of (1) the combined reported profit of all operating segments that reported a profit or (2) the absolute value of the combined reported loss of all operating segments that reported a loss. Segment reported revenue, including intersegment revenues, is 10% or more of the combined revenue of all operating segments. Segment residual profit after the cost of equity is 10% or more of the combined residual profit of all operating segments.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following is not a quantitative threshold for defining a segment’s materiality?
Segment assets are 10% or more of the combined assets of all operating segments.
The segment absolute value of its profit or loss is 10% or more of the greater of (1) the combined reported profit of all operating segments that reported a profit or (2) the absolute value of the combined reported loss of all operating segments that reported a loss.
Segment reported revenue, including intersegment revenues, is 10% or more of the combined revenue of all operating segments.
Segment residual profit after the cost of equity is 10% or more of the combined residual profit of all operating segments.
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