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CA Intermediate · Advanced Accounting · AS 17 Segment Reporting

Orchid Textiles Ltd uses business segments as its primary reporting format and geographical areas as the secondary format. For a geographical segment whose revenue is more than 10% of enterprise revenue, which of the following is NOT required to be disclosed under AS 17 as secondary segment information?

Segment liabilities are not required. When business segments are the primary format, significant geographical segments as the secondary format need only external revenue, carrying amount of segment assets and capital expenditure for the period. Liabilities, depreciation and similar details are primary-format disclosures under AS 17.

  1. ASegment revenue from external customers by geographical location
  2. BCarrying amount of segment assets
  3. CTotal cost incurred during the period to acquire segment assets
  4. DSegment liabilitiesCorrect

Explanation

When business segments are primary, AS 17 requires for each significant geographical segment: external revenue, carrying amount of segment assets and capital expenditure incurred during the period. Segment liabilities are required only for the primary format. Hence segment liabilities is the item not required here.

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