Objective Types (IFRS 8) 1
IFRS 8 – MULTIPLE CHOICE QUESTIONS
1. Operating segment information should:
A. increase the number of reported segments and provide more information
B. enable users to see an undertaking through the eyes of management
C. enable an undertaking to provide timely segment information for external interim
reporting with relatively low incremental cost
D. enhance consistency with the management discussion and analysis or other annual
report disclosures
E. provide various measures of segment performance
F. reduced staff
1. A to C only
2. A to F all
3. A to D only
4. A to E only
2. Segments based on the structure of an undertaking’s internal organisation have other
significant advantages
A. An ability to see an undertaking “through the eyes of management” enhances a user’s
ability to predict actions or reactions of management that can significantly affect the
undertaking’s prospects for future cash flows
B. As information about those segments is generated for management’s use, the
incremental cost of providing information for external reporting should be relatively low.
C. Practice has demonstrated that the term ‘industry’ is subjective. Segments based on an
existing internal structure should be less subjective
D. Earnings per share calculations can be compared between segments
1. A and B only
2. A to C only
3. A to D all
3. An operating segment is a component of an undertaking
A. that engages in business activities from which it may earn revenues and incur expenses
(including revenues and expenses relating to transactions with other components of the
same undertaking)
B. whose operating results are regularly reviewed by the undertaking’s chief operating
decision maker to make decisions about resources to be allocated to the segment and
assess its performance
C. for which discrete financial information is available
D. which is taxed separately from other components
1. A and B only
2. A to C only
3. A to D all
4. IFRS 8 requires an undertaking to report information about
A. the revenues derived from its products/services (or groups of similar products/services)
B. about the countries in which it earns revenues and holds assets
C. about major clients
D. about transactions with governments
1. A and B only
2. A to C only
3. A to D all
[Link]
Objective Types (IFRS 8) 2
5. IFRS 8 requires an undertaking to give descriptive information about
A. the way the operating segments were determined
B. the products and services provided by the segments
C. differences between the measurements used in reporting segment information and those
used in the undertaking’s financial statements
D. changes in the measurement of segment amounts from period to period
E the impact of staff development policies on the segment
1. A and B only
2. A to C only
3. A to D only
4. A to E all
6. A component of an undertaking that sells primarily or exclusively to other operating
segments of the undertaking
1. Must be classed as an operating segment
2. Must be excluded from being an operating segment
3. Is included as an operating segment if the undertaking is managed that way.
7. IFRS 8 requires the following information
A. factors used to identify the undertaking’s operating segments, including the basis of
organisation (for example, whether management organises the undertaking around
differences in products and services, geographical areas, regulatory environments, or a
combination of factors and whether segments have been aggregated)
B. types of products/services from which each reportable segment derives its revenues
C. the economic environment of each segment
D. the legal structure of each segment
1. A and B only
2. A to C only
3. A to D all
8. Interest:
1. Net interest revenue must be shown
2. Neither interest revenue nor interest expense is required to be shown
3. Both interest revenue and interest expense are required to be shown
4. Both interest revenue and interest expense are required to be shown, unless a
majority of the segment’s revenues are from interest and the chief operating
decision maker relies primarily on net interest revenue to assess the performance
of the segment
9. IFRS 8 shall apply to
A. listed companies
B. any company reporting under IFRS that wishes to provide the information
C. all other companies reporting under IFRS
1. A and B only
2. All of above
10. If information is not presented to the directors in sectors
1. Look to the next lower level of internal segmentation that reports information along
product and service lines or geographical lines
2. Construct segments solely for external reporting purposes
3. Segment information is not required for published financial statements
[Link]
Objective Types (IFRS 8) 3
11. If a financial report contains both the consolidated financial statements of a parent, as
well as the parent’s separate financial statements, segment information is required
1. only in the consolidated financial statements
2. only in the parent’s separate financial statements
3. both sets of financial statements
12. An operating segment may engage in business activities for which it has yet to earn
revenues, for example, start-up operations
1. will be operating segments before earning revenues
2. may be operating segments before earning revenues
3. will not be operating segments before earning revenues
13. Head office expenses
1. Can be allocated to segments on a reasonable basis
2. Must not be allocated to segments
3. Must be allocated to segments based on their turnover
14. An undertaking’s pension plans
1. will be operating segments
2. may be operating segments
3. will not be operating segments
15. Two or more operating segments may be aggregated into a single operating segment if
aggregation is consistent with the core principle of IFRS 8, the segments have similar
economic characteristics, and the segments are similar in each of the following
respects:
A. the nature of the products and services
B. the nature of the production processes
C. the type or class of client for their products and services
D. the methods used to distribute their products or provide their services
E. if applicable, the nature of the regulatory environment, for example, banking, insurance
or public utilities
F. staff numbers
1. A to F all
2. A to C only
3. A to D only
4. A to E only
16. As a percentage of sales, profits or assets, a segment should be at least
1. 5%
2. 10%
3. 15%
4. 20%
17. The total amount of revenue that should be covered by reportable segments is, at least:
1. 50%
2. 60%
3. 70%
4. 75%
[Link]
Objective Types (IFRS 8) 4
18. Operating segments that do not meet any of the quantitative thresholds
1. may be considered reportable, and separately disclosed
2. must be combined and disclosed in an ‘all other segments’
3. must be ignored
19. A segment is a reportable segment in the current period, segment data for a prior period
1. is not required
2. is optional
3. is required unless the necessary information is not available
20. IFRS 8 requires reconciliations of segment totals to total undertaking amounts
A. of segment revenues
B. reported segment profit or loss
C. segment assets
D. segment liabilities
E. other material segment items
F. staff numbers
1. A to F all
2. A to C only
3. A to D only
4. A to E only
21. Information about the segments should include
A. revenues from external clients
B. revenues from transactions with other operating segments of the same undertaking
C. interest revenue
D. interest expense
E. depreciation and amortization
F material items of income and expense
G. the undertaking’s interest in PoL of associates & JV is accounted for by equity method
H. income tax expense or income; an
I. material non-cash items other than depreciation and amortization
1. A to F only
2. A to G only
3. A to H only
4. A to I all
22. An undertaking shall report the following geographical information
A revenues from external clients attributed to the undertaking’s country of domicile and
attributed to all foreign countries in total from which the undertaking derives revenues
B non-current assets other than financial instruments, deferred tax assets, post-
employment benefit assets, and rights arising under insurance contracts located in the
undertaking’s country of domicile and located in all foreign countries in total in which the
undertaking holds assets
1. A and B both
2. A only
[Link]
