Page 3 - 25. COMPILER QB - IND AS 108

Based on the quantitative thresholds, which of the above segments A to E would be considered as reportable
segments for the year ending March 31, 20X1?

SOLUTION
With regard to quantitative thresholds to determine reportable segment relevant in context of instant case, Ind
AS 108 may be noted which provides as follows:

“The absolute amount of its reported profit or loss is 10 per cent or more of the greater, in absolute amount,
of (i) the combined reported profit of all operating segments that did not report a loss and (ii) the combined
reported loss of all operating segments that reported a loss.”
In compliance with Ind AS 108, the segment profit/loss of respective segment will be compared with the
greater of the following:

i) All segments in profit, i.e., A, B and E – Total profit Rs 8,280 crores.
ii) All segments in loss, i.e., C and D – Total loss Rs 6,800 crores.
Greater of the above – Rs 8,280 crores.
Based on the above, reportable segments will be determined as follows:
Segment Profit/(Loss) (Rs in As absolute % of Reportable segment
crore) Rs 8,280 crore
A 780 9% No
B 1,500 18% Yes

C (2,300) 28% Yes
D (4,500) 54% Yes
E 6,000 72% Yes
Total 1,480
Hence B, C, D, E are reportable segments.

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