mer corporation has five major operating segments and operates i 250183

Mer Corporation has five major operating segments and operates in both domestic and foreign markets. Mer is organized internally on an industry basis. Information about its revenue from operating segments and foreign operations for 2011 is as follows (in thousands):



A Japanese subsidiary of Mer operates exclusively in the soft drink market. All other foreign operations are carried out through Canadian subsidiaries, none of which are included in the soft drink business.

Only the soft drink and distilled spirits segments are reportable segments under the asset and operating-profit tests for segments.

REQUIRED

1. Determine which industry segments are reportable segments under the revenue test for segment reporting. Assume no further aggregation is possible. Would the possible aggregation of smaller segments change your response?

2. Prepare a schedule suitable for disclosing Mer’s revenue by segment for 2011, assuming no further aggregation is possible.

3. Prepare a schedule suitable for disclosing Mer’s revenue by geographic area for 2011.

Related Articles

armstrong helmet company 239138

Armstrong Helmet Company manufactures a unique model of bicycle helmet Question Case project Learning Objectives: Prepare practical applications of course concepts Develop analytical and critical thinking Develop decision-making capabilities Enhance professional...

read more
GET A FREE QUOTE





  
Open chat
Need help? We are Online 24/7
Hello 👋
Can we help you?