A company identified four industry segments as reportable out of a total of eigh

Question

A company identified four industry segments as reportable out of a total of eight subunits of the company based on the identifiable asset criterion. Total company sales excluding intersegment sales are $2,000,000 for the year, and the sum of sales for the four identified segments is $1,300,000.

     Given these facts, the company

a.

need not report on a segment basis this period.

b.

must disclose only the four subunits as segments.

c.

must identify one or more additional segments for segmental disclosure purposes.

d.

treat all subunits of the firm as reportable.

a.

need not report on a segment basis this period.

b.

must disclose only the four subunits as segments.

c.

must identify one or more additional segments for segmental disclosure purposes.

d.

treat all subunits of the firm as reportable.

Explanation / Answer

Given these facts, the company must identify one or more additional segments for segmental disclosure purposes. Option C is correct

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