CFA CFA Level 1 Question of the Week – Financial Reporting and Analysis

Question of the Week – Financial Reporting and Analysis

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    • Avatar of AdaptPrepAdaptPrep
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        Which one of the following is not a quantitative criterion necessitating a company to disclose separate information about any operating segment?

        • The segment constitutes 10 percent or more of combined operating profit,
          assets, or revenue.
        • The combined revenue from external customers for all reportable segments is
          less than 75 percent of the total company revenue.
        • A single customer represents 20 percent or more of the company’s total
          revenue.
      • Avatar of AdaptPrepAdaptPrep
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          The quantitative criteria
          necessitating a company to disclose separate information about any operating
          segment are:

          • The segment constitutes 10 percent or more of
            combined operating profit, assets, or revenue.
          • The combined revenue from external customers for
            all reportable segments is less than 75 percent of the total company revenue.
          • A single customer represents 10 percent or more
            of the company’s total revenue.
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