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CA Intermediate · Advanced Accounting · AS 17 Segment Reporting

The following balances relate to the textiles segment of Anand Mills Ltd. at year end (₹ lakh): fixed assets used in the segment 300; inventories 80; trade receivables 70; advance income tax paid 25; and investments held at the head office for general corporate purposes 40. What are the segment assets under AS 17?

Segment assets are ₹450 lakh, being fixed assets ₹300 lakh, inventories ₹80 lakh and receivables ₹70 lakh. AS 17 includes only operating assets used by the segment, so advance income tax and head-office investments held for general corporate purposes are excluded.

  1. A₹450 lakhCorrect
  2. B₹475 lakh
  3. C₹490 lakh
  4. D₹515 lakh

Explanation

Segment assets are operating assets used by the segment in its operations: 300 + 80 + 70 = ₹450 lakh. Income tax assets are excluded, and so are head-office investments held for general corporate purposes. Including advance tax gives ₹475 lakh, including the investments gives ₹490 lakh, and including both gives ₹515 lakh.

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