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7 Cards in this Set
- Front
- Back
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Segment Reporting
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sets forth financial reporting standards for segment reporting, the disclosure of information about different components of an enterprise's operations as well as information related to the enterprise's products and services, geographic areas and customers.
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Puprose of Segment Disclosure
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to assist investors and lenders in assessing the future potential of an enterprise.
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Operating Segments Tests
(10% Tests) |
1) Revenues
2)Operating Profit or Loss 3)Segment Assets |
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Revenues Test
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segment revenue is 10% or more of combined segment revenue(including intersegment revenue)
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Operating Profit or Loss
(10% Test) |
The absolute amount of segment profit or loss is 10% or more of the greater, in absolute amount, of combined profit of segments reporting profit, or combined loss of segments reporting loss.
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Segment Assets
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Segement Assets are 10% or more of total segment assets.
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Segment Reporting
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is done entirely in the footnotes of a publicly traded company.
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