Asked by Bridger Johnson on Jul 03, 2024
Verified
A component of an entity may be a/an
A) reportable or operating segment.
B) subsidiary.
C) asset group.
D) reportable or operating segment,subsidiary,or asset group.
Reportable Segment
A component of a business that earns revenues and incurs expenses, and for which separate financial information is available and regularly reviewed by the entity's chief operating decision-maker in deciding how to allocate resources and assess performance.
Operating Segment
A component of a business that engages in business activities from which it may earn revenues and incur expenses, and for which discrete financial information is available.
Asset Group
A collection of assets that share similar characteristics and are accounted for together in financial reporting.
- Identify distinctions between U.S. GAAP and IFRS regarding the presentation of the income statement and comprehensive income.
- Comprehend the criteria for documenting fluctuations in the valuation of different liabilities and assets according to both U.S. GAAP and IFRS standards.
Verified Answer
BM
Blake MooreJul 06, 2024
Final Answer :
D
Explanation :
A component of an entity may be classified as a reportable or operating segment, subsidiary, or asset group depending on its characteristics and level of significance to the entity's operations and financial performance. Therefore, option D is the best choice.
Learning Objectives
- Identify distinctions between U.S. GAAP and IFRS regarding the presentation of the income statement and comprehensive income.
- Comprehend the criteria for documenting fluctuations in the valuation of different liabilities and assets according to both U.S. GAAP and IFRS standards.