according to pfrs 8, a reportable operating segment is one which
According to PFRS 8, a reportable operating segment is one which:
Answer: According to PFRS 8 (Philippine Financial Reporting Standards 8) on ‘Operating Segments’, a reportable operating segment is a component of an entity that meets any of the following quantitative thresholds:
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Its revenue from external customers is 10% or more of the combined revenue of all operating segments.
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The absolute amount of its revenue from external customers is ₱ 1,000,000 or more.
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Its segment result is 10% or more of the combined result of all operating segments.
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The absolute amount of its segment result (whether profit or loss) is 10% or more of the combined result of all operating segments.
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Its assets are 10% or more of the combined assets of all operating segments.
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The absolute amount of its assets is ₱ 1,000,000 or more.
A business segment that meets any one of these criteria is considered a reportable operating segment under PFRS 8, and disclosure of segment information is required for such segments in the financial statements of the entity.