Identify the reportable business segments, Financial Accounting

Juniper Ltd is a listed diversified company.  In preparing its financial statements in accordance with AASB 8, the chief operating officer has identified three operating segments: construction, retail and transport.  Details concerning each operating segment are provided in the tables below:

 

Total Sales

$

('000)

Profit before tax

$

('000)

Assets

$

('000)

Construction

75

   3

500

Retail

315

-20

3 125

Transport

375

35

2 500

Head Office

    0

  0

   125

 

 

 

Depreciation

$

('000)

Other Non

Cash Expenses

$

('000)

 

Liabilities

$

('000)

Capital

Acquisitions

$

('000)

Construction

      10

15

2 000

65

Retail

      30

20

1 250

125

Transport

      25

25

3 000

250

 

Additional Information

  • Sales are primarily to external parties with the exception of $50 000 external sales made to Construction from the Transport segment. These sales generated a profit amounting to $10 000. All inter-segment liabilities have been paid and any materials sold between the segments have since been sold externally.
  • There are no investments in associates.
  • The income tax expense for the year is $10 000.
  • There are no extraordinary items.
  • Unallocated corporate assets total $75 000.
  • Unallocated corporate liabilities amounted to $150 000.
  • Unallocated corporate expenses amounted to $35 000.

Required

(i) In accordance with the relevant accounting standard, identify the reportable business segments showing all calculations.

(ii) What do you consider are the advantages of providing segment information to external users?

Posted Date: 4/1/2013 1:40:16 AM | Location : United States







Related Discussions:- Identify the reportable business segments, Assignment Help, Ask Question on Identify the reportable business segments, Get Answer, Expert's Help, Identify the reportable business segments Discussions

Write discussion on Identify the reportable business segments
Your posts are moderated
Related Questions
premium coupons that already have been expired should be or shouldn''t be estimated as liability?

Assets                                                       2011                                                                        2010 Non Current Assets

what are five modern financialaccounting techniques

Dissolutions situations There are two situations that need to be considered under dissolutions. These are:- 1) Where the assets are sold at once (one single transaction) 2) As

FOREING BRANCHES The head office my set up a branch in a foreign  country. IAS 21 requires that the results of that  foreign branch to be translated into the local currency for t

Potential sources of finance for very new businesses Initial owner finance is almost always the first source of finance for a business, whether from the owner or from family co

ACTS OF BANKRUPTCY The following are the acts of bankruptcy on which a petition may be founded: (a) Assignment of property to trustee:   whereby one gives up all his proper

Completed executions A judgement creditor cannot retain the "benefit" of an execution or attachment, unless he has completed it- Before the date of the receiving order,

Q. Probability of Success in Application for Debt Finance? I have to advise you that there are signs of overtrading in our recent financial statements and our company is approa

Select two of the following firms: Dole Foods, Campbell Soup, Hershey and Dr. Pepper Snapple. Use the 10-K, annual report and other information to answer the following questions.