Apply threshold tests—Disclosure
DaP Corporation’s home country is the United States, but it also has operations in Canada, Mexico, Brazil, and South Africa and reports internally on a geographic basis. Information relevant to DaP’s operating segment disclosure requirement for the year ended December 31, 2011, is presented in summary form as follows:
|
United States |
Canada |
Mexico |
Brazil |
South Africa |
Consolidated |
|
|
Sales to unaffiliated customers |
$120,000 |
$13,000 |
$20,000 |
$22,000 |
$15,000 |
$190,000 |
|
Intersegment transfers |
29,000 |
11,000 |
— |
— |
10,000 |
$ 50,000 |
|
Total revenue |
$149,000 |
$24,000 |
$20,000 |
$22,000 |
$25,000 |
$240,000 |
|
Operating profit |
$ 24,000 |
$ 6,000 |
$ 8,000 |
$ 5,000 |
$ 7,000 |
$ 50,000 |
|
Identifiable assets |
$150,000 |
$30,000 |
$19,000 |
$20,000 |
$31,000 |
$250,000 |
REQUIRED
1. Prepare schedules to show which of DaP’s operating segments require separate disclosure under (a) the 10% revenue test, (b) the 10% asset test, and (c) the 10% profit test.
2. Which of DaP’s operating segments meet at least one of the tests for segment reporting?
3. Prepare a schedule to disclose DaP’s segment operations from the information given.