Reference no: EM133124821

Questions -

Q1. Chicken Wings Company reports operating profits as to industry segments in its supplementary financial information annually. The following information is available for 2021 as to the sales and traceable cost, respectively:

Segment 1- P750,000; P450,000

Segment 2- P500,000; P225,000

Segment 3- P250,000; P125,000

Additional expense not included above are as follows: Indirect operating expense- P240,000

General corporate expense- P180,000

Interest expense- P96,000

Chicken Wings allocates common costs based on the ratio of segment's sales to total sales. What would be the operating profit of Segment 1?

Q2. Chicken Company has three lines of business, each of which was determined to be reportable segment. Chicken Company sales aggregated P15,000,000 in 2020 of which Segment Wings contributed 40%. Traceable costs were P3,500,000 for Segment Wings of a total of P10,000,000 for the company as a whole. For internal reporting, Chicken allocates common costs of P3,000,000 based on the ratio of a segment's income before common costs. In its 2020 financial statements, how much should Chicken report as operating profit for Segment Wings?

Q3. IFRS 8 is required to be applied by

a. entities whose debt and equity securities are traded in a public market and those entities who are in the process of filing its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market

b. entities whose debt and equity securities are traded in a public market.

c. entities whose equity securities are traded in a public market and those entities who are in the process of filing its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market.

d. all entities regardless of whether their securities are being traded or not.