Practice prompt · Q:statement-presentation-comprehensive-income-and-disclosure/reportable-segment-order-001

Apply reportability only after controlling the population

Tests the order of operating segment identification, aggregation, quantitative tests, coverage, consistency, and reconciliation.

Updated Aug 7, 2026 Review due Nov 7, 2026

Practice

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Which sequence correctly turns a controlled operating-segment population into a reviewable reportable-segment conclusion?

Choose the best answer. a Control the operating-segment population, evaluate permitted aggregation, apply the current revenue, profit-or-loss, and asset tests, assess external-revenue coverage and additional segments, then address consistency, comparatives, other components, eliminations, and consolidated reconciliations. b Apply one quantitative threshold to organization-chart boxes and call every passing box an operating segment. c Aggregate components until only one passes so disclosure is shorter. d Stop when one test passes because consolidated and external-revenue ties are separate from reportability.

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Answer: a

Choice a. Identification precedes aggregation; aggregation precedes the three reportability tests; coverage, additional-segment judgment, consistency, comparatives, and consolidated reconciliations follow.