Garnet Limited has 4 operating segments. The total revenue (internal and external) and assets are set out as below: Segment Inter Segment Sales…

As per AS 17 ‘Segment Reporting', a business segment or geographical segment should be identified as a reportable segment if: 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 Its segment assets are 10% or more of the total assets of all segments. 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. This is not applicable in the given case. In the given case 75% of External Revenue is 10,500 Lakhs (₹ 14,000 × 75%) and the total External Revenue from Reportable segments is 12,300 Lakhs. So, no need to add Reportable segments. On the basis of turnover criteria segment Fan is reportable segment as its sales are more than - 1,850 lakhs (10% of 18,500 lakhs). Moreover, total external revenue attributable to reportable segment is also more than 75% of the total enterprise revenue. On the basis of asset criteria, Fan and Light are reportable segments as their assets are more than - 4,450 lakhs (10% of 44,500 lakhs).