An operating segment is a component of an entity:
(a) that engages in business activities from which it may earn revenues and incur expenses
(b) whose operating results are regularly reviewed by the entity’s chief operating decision
maker (CODM) to make decisions about resources to be allocated to the segment and
assess its performance; and
(c) for which discrete financial information is available.
An entity shall report separately information about an operating segment that meets any of the following Quantitative thresholds: (Reportable operating segments)
1. Its reported revenue (external+internal including transfers) is 10% or more of the combined revenue of all operating segments.
2.The absolute amount of its reporeted profit or loss is 10% or more of the greater, in absolue amount, of
i. the combined reported profit of all operating segments that did not report a loss and
ii. the combined reported loss of all operating segments that reported a loss.
3. Its assets are 10% or more of the combined assets of all operating segments.
Operating segments that do not meet the above criteria may be considered as reportable and seperatley disclosed, if management believes that information about the segment will be useful to the users of the financial statements.
