An entity is engaged in the manufacturing industry and has recently purchased an 80% holding in a small financial services group. This group does not meet any of the threshold criteria for a reportable segment. Can the entity disclose the financial services group as a separate business segment?
(a) No, because it does not meet any of the IAS criteria, it cannot be disclosed as a separate segment.
(b) Yes, even though it does not meet the IAS criteria, an entity can disclose business segments separately if they are a distinguishable component.
(c) The entity can disclose only 80% of the results and net assets of the banking group.
(d) Because of the disparity in types of business, the group should disclose its segmental information on a geographical basis.