BMS ssf - AS-17

Paragraphs 27 to 29 of AS 17 on Segment Reporting deals with reportable segments.

Paragraph 27 requires that a business segment or geographical segment should be

identified as a reportable segment if :

(i) its revenue from sales to external customers and from transactions with other

segments is 10 percent or more of the total revenue, external and internal, of all

segments; or

(ii) its segment result, whether profit or loss, is 10 percent or more of-

(a) the combined result of all segments in profit, or

(b) the combined result of all segments in loss, whichever is greater in absolute

amount; or

(iii) its segment assets are 10 percent or more of the total assets of all segments.

A business segment or a geographical segment which is not a reportable segment as per

paragraph 27, may be designated as a reportable segment despite its size at the

discretion of the management of the enterprise. If that segment is not designated as a

reportable segment, it should be included as an unallocated reconciling item.

If total external revenue attributable to reportable segments constitutes less than 75% of

the total enterprise revenue, additional segments should be identified as reportable

segments, even if they do not meet the 10 percent thresholds specified in paragraph 27

of the standard, until at least 75 percent of the total enterprise revenue is included in

reportable segments.