The Chief Accountant of Cotton Garments Limited gives the following data regarding its five segments: (₹ in Crore) Particulars A B C D E Total…

(a) As per para 27 of AS 17 'Segment Reporting', a business segment or geographical segment should be identified as a reportable segment if: (i) Its revenue from sales to external customers and from other transactions with other segments is 10% or more of the total revenue- external and internal of all segments; or (ii) Its segment result whether profit or loss is 10% or more of: (1) The combined result of all segments in profit; or (2) The combined result of all segments in loss, whichever is greater in absolute amount; or (iii) Its segment assets are 10% or more of the total assets of all segments. Further, if the total external revenue attributable to reportable segments constitutes less than 75% of total enterprise revenue, additional segments should be identified as reportable segments even if they do not meet the 10% thresholds until at least 75% of total enterprise revenue is included in reportable segments. Accordingly, (a) On the basis of revenue from sales criteria, segment A is a reportable segment. (b) On the basis of the result criteria, segments A & E are reportable segments (since their results in absolute amount is 10% or more of 100crore). (c) On the basis of asset criteria, all segments except E are reportable segments. Since all the segments are covered in atleast one of the above criteria, all segments have to be reported upon in accordance with AS 17. Hence, the opinion of chief accountant that only segment 'A' is reportable is wrong.