Professional Documents
Culture Documents
Segment and
Interim Reporting
McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
Segment Reporting
13-2
Segment Reporting
13-3
Segment Reporting
13-4
FASB 131
13-7
Defining Reportable Segments
13-8
The Percent Quantitative Thresholds
13-9
Revenue Test
13-10
Profit (Loss) Test
13-11
Asset Test
13-12
Comprehensive Disclosure Test
13-13
Seventy-Five Percent Revenue Test
13-14
Other Considerations
13-15
Other Considerations
13-16
Other Considerations
13-17
Other Considerations
13-18
Other Considerations
13-19
Reporting Segment Information
13-21
Reporting Segment Information
13-22
Reporting Segment Information
13-23
Reporting Segment Information
– Total assets for which there has been a
material change from the most recent
annual report.
– Any differences from the most recent
annual report in the definition of operating
segments or in how segment profit or loss
is computed.
– A reconciliation of the total of segment profit
or loss to the entity’s consolidated totals.
13-24
Enterprisewide Disclosures
13-25
Goodbye Segment Reporting!
13-26
Hello Interim Reporting!
• Interim reports, which cover a time period of less
than one year, are as important to investors and
other statement users as annual reports.
13-30
Accounting Issues
13-31
Discrete Versus Integral View
13-33
Discrete Versus Integral View
13-34
Discrete Versus Integral View
13-35
Reporting Revenue
13-36
Reporting Revenue
13-37
Reporting Revenue
13-38
Cost of Goods Sold (CGS)
• Cost of goods sold is generally the largest single
expense on the interim income statement. In
general, the interim cost of goods sold should be
computed using the following guidance (APB
28):
– “Those costs and expenses that are
associated directly with or allocated to the
products sold or the services rendered for
annual reporting purposes…should be
similarly treated for interim reporting
purposes.”
13-39
CGS Exceptions
13-40
CGS Exceptions
• Lower-of-cost-or-market valuation method
allows for loss recoveries for increases in
market prices in later interim periods of the
same fiscal year.
13-41
All Other Costs and Expenses
13-43
Allocation Situations
13-44
Accounting for Income Taxes in Interim
Periods
13-47
Accounting Changes
13-48
Goodbye Chapter 13!!!
13-49
Chapter 13
End of Chapter
McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.