Chapter 13 – Segment And Interim Reporting
P13-19 Segment Disclosures in Financial Statements
a.
Multiplex Inc.
Schedule for 10% Revenue Test
For the Year Ended December 31, 20X5
(in millions)
Segment
Percent of Combined
Reportable
Segment
Revenue
Revenue of $628 Million
Segment
Car Rental
$ 39
6.2%
No
Aerospace
204
32.5
Yes
Communications
60
9.6
No
Health/Fitness
50
8.0
No
Heavy Equipment
275
43.8
Yes
Total
$628
Multiplex Inc.
Schedule for the 10% Segment Profit or Loss Test
For the Year Ended December 31, 20X5
(in millions)
Segment
Percent of Test
Reportable
Segment
Profit (loss)
Amount of $105 million
Segment
Car Rental
$ 17
16.2%
Yes
Aerospace
6
5.7
No
Communications
18
17.1
Yes
Health/Fitness
20
19.0
Yes
Heavy Equipment
44
41.9
Yes
Total
$105
Determination of the profit of each operating segment (in $millions)
Car
Communi-
Health/
Heavy
Rental
Aerospace
cations
Fitness
Equipment
Revenue
$ 39
$ 204
$ 60
$ 50
$ 275
Cost of goods sold
(141)
(177)
Selling expenses
(16)
(42)
(29)
(23)
(37)
Other traceable
expenses
(4)
(8)
(11)
(5)
(10)
Allocation of
common costs
(2)
(7)
(2)
(2)
(7)
Operating profit
$ 17
$ 6
$ 18
$ 20
$ 44
Total profits (in $millions) amount to $105: ($17 + $6 + $18 + $20 + $44).
