According to pfrs 8, a reportable operating segment is one which

General
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according to pfrs 8, a reportable operating segment is one which

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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:

  1. Its revenue from external customers is 10% or more of the combined revenue of all operating segments.

  2. The absolute amount of its revenue from external customers is ₱ 1,000,000 or more.

  3. Its segment result is 10% or more of the combined result of all operating segments.

  4. The absolute amount of its segment result (whether profit or loss) is 10% or more of the combined result of all operating segments.

  5. Its assets are 10% or more of the combined assets of all operating segments.

  6. 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.