An entity manufactures suits, clothing, bed linen, and various cotton and manmade fiber products. It has several segments, which are reported internally as
|
Segment |
|||
|
Segments |
Sales |
Profit |
assets |
|
Suits |
40% |
45% |
50% |
|
Shirts |
30% |
35% |
33% |
|
Bed linen |
15% |
10% |
7% |
|
Blinds |
8% |
6% |
5% |
|
Cloth |
7% |
4% |
5% |
|
100% |
100% |
100% |
The table represents the percentages of sales, profit, and segment assets that are attributable to the different segments. The entity wants to present bed linen and cloth as a single segment but is wondering whether the information can be aggregated. How will the segmental information be presented in the financial statements?
(a) Bed linen and cloth, suits, and shirts, will all be shown as separate segments with blinds in the other category.
(b) All of the segments should be presented separately.
(c) Suits, shirts, and bed linen will be separate segments with blinds and cloth shown as a single segment.
(d) Suits and cloth will be one segment with shirts, bed linen, and blinds shown as other separate segments.