Indirect method FOREIGN EXCHANGE

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 Chapter 22 – Operating Segments Page 326 7. The Project Company has correctly classified its packaging operations as a disposal group held for sale and as discontinued operations. In the year ended 31 December 20X7 this disposal group incurred trading losses after tax of CU20 million and the loss on remeasuring it to fair value less costs to sell was CU15 million. How should the disposal groups losses for the year ended 31 December 20X7 be presented, according to IFRS5 Non-current assets held for sale and discontinued operations? In profit or loss In other comprehensive income A CU35 million loss Nil B CU20 million loss CU15 million loss C Nil CU35 million loss D CU15 million loss CU20 million loss 8. Mackerel, a company listed on a recognised stock exchange, reports operating results from its North American activities to its chief operating decision maker. The segment information for the year is: Revenue CU3,675,000 Profit CU970,000 Assets CU1,700,000 Number of employees 2,500 Mackerels results for all of its segments in total are: Revenue CU39,250,000 Profit CU9,600,000 Assets CU17,500,000 Number of employees 18,500 According to IFRS8 Operating segments, which piece of information determines for Mackerel that the North American activities are a reportable segment? A Revenue B Profit C Assets D Number of employees