Page 216 - SBR Integrated Workbook STUDENT S18-J19
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Chapter 14
1.2 Definitions
An operating segment is a component of an entity:
that engages in business activities
whose results are regularly reviewed by the chief operating
decision maker
for which discrete financial information is available.
This means that the operating segments disclosed in the financial statements should
be the same as those disclosed and reviewed in internal management reports.
1.3 Aggregation
Two or more operating segments can be reported as a single operating segment
provided that they have similar economic characteristics, and they are similar in
terms of:
the products or services they sell
production processes
types of customers
distribution methods.
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