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CA Intermediate · Advanced Accounting · AS 17 Segment Reporting

Sagar Foods Ltd. determines that its risks and returns are primarily affected by differences in the products it sells, and it also operates in several geographical areas. Business segments are therefore its primary format. Which disclosure does AS 17 require for each geographical segment that is a secondary segment and meets the 10% threshold?

The required secondary-format disclosures are segment revenue from external customers, the carrying amount of segment assets, and capital expenditure incurred during the period. Items such as segment result, segment liabilities and depreciation are needed only for primary segments, so they are not mandatory for secondary geographical segments.

  1. ASegment result, segment liabilities and depreciation
  2. BSegment result and segment assets only
  3. COnly segment revenue from external customers
  4. DSegment revenue from external customers, carrying amount of segment assets and capital expenditureCorrect

Explanation

For secondary segments, AS 17 requires only three items: segment revenue from external customers, the carrying amount of segment assets and the total cost incurred on acquiring segment assets (capital expenditure). Segment result, liabilities and depreciation are primary-format disclosures, so the other options are wrong.

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