The direct method FOREIGN EXCHANGE

Chapter 22 – Operating Segments Page 324 7 Self Test Questions Chapter 22 1. Are the following statements relating to a discontinued operation true or false, according to IFRS5 Non-current assets held for sale and discontinued operations? 1 When the discontinued criteria are met after the end of the reporting period, the operation shall retrospectively be separately presented as a discontinued operation. 2 The net cash flows attributable to the operating, investing, and financing activities of a discontinued operation shall be separately presented. Statement 1 Statement 2 A False False B False True C True False D True True 2. Which ONE of the following is a requirement for a component of an entity to be classified as a discontinued operation in accordance with IFRS5 Non- current assets held for sale and discontinued operations? A Its activities must cease permanently prior to the financial statements being authorised for issue by management B It must comprise a separately reported segment in accordance with IFRS8 Operating segments C Its assets must have been classified as held for sale in the previous financial statements D It must have been a cash-generating unit or a group of cash- generating units while being held for use 3. Are the following statements true or false, according to IFRS8 Operating segments? 1 If an entity changes the way it is structured internally so that its reportable segments change, the comparative information for earlier periods must be restated. 2 Disclosure is always required of the total assets of each reportable segment. Statement 1 Statement 2 A False False B False True C True False D True True Chapter 22 – Operating Segments Page 325 4. The Lamda Company has correctly classified its manufacturing operations as a disposal group held for sale and as discontinued operations during the year ended 31 December 20X7. Are the following statements true or false, according to IFRS5 Non-current assets held for sale and discontinued operations? 1 The disposal groups results for the year ended 31 December 20X6 should be re-presented as relating to discontinued operations in the comparative figures for the 20X7 statement of comprehensive income. 2 The disposal groups assets at 31 December 20X6 should be re- presented as held for sale in the comparative figures for the 20X7 statement of financial position. Statement 1 Statement 2 A False False B False True C True False D True True 5. Are the following statements true or false, according to IFRS8 Operating segments? 1 The measurement of the profit or loss to be disclosed for each reportable segment is defined in IFRS8. 2 The profit or loss disclosed for a segment should relate to the total assets attributed to that segment. Statement 1Statement 2 A False False B False True C True False D True True 6. Are the following statements true or false, according to IFRS8 Operating segments? 1 A major customer is defined as one providing revenue which amounts to 10 or more of the combined revenue, internal and external, of all operating segments. 2 The identities of major customers need not be disclosed. Statement 1 Statement 2 A False False B False True C True False D True True