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CA Intermediate · Advanced Accounting · AS 17 Segment Reporting

Sagar Pharma Ltd. uses business segments as its primary reporting format and geographical segments as secondary. External revenue by location of customers for the year is: India ₹1,200 lakh, USA ₹250 lakh, UK ₹190 lakh, UAE ₹210 lakh and Japan ₹150 lakh, a total of ₹2,000 lakh. For how many geographical markets must segment revenue from external customers be separately disclosed as secondary information, applying the 10% criterion?

Three geographical markets need separate disclosure: India, USA and UAE. The threshold is 10% of total enterprise revenue, which is ₹200 lakh, and only these three markets exceed it, while the UK at ₹190 lakh and Japan at ₹150 lakh do not.

  1. A2
  2. B3Correct
  3. C4
  4. D5

Explanation

10% of ₹2,000 lakh is ₹200 lakh. Revenue exceeds this only for India (1,200), USA (250) and UAE (210). UK (190) and Japan (150) fall below the threshold. So 3 markets require separate disclosure.

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