...Reporting Standard 8 Operating Segments Core principle 1 An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. Scope 2 This IFRS shall apply to: (a) the separate or individual financial statements of an entity: (i) (ii) (b) whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market; and the consolidated financial statements of a group with a parent: (i) whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or (ii) that files, or is in the process of filing, the consolidated financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market. 3 If an entity that is not required to apply this IFRS chooses to disclose information about segments that does not comply with this IFRS, it shall not describe the information as segment information. 4 ...
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...importance of MFRS 8 Operating Segments for accounting user A Framework for decision making MFRS 8 is important because It specifies how the firm should report their information about its operating segments in the annual financial statements and interim reports and because its sets out the requirements for related disclosures about products and services, geographical area and major customers, therefore the firm can not include any segment in the annual financial statement, any segment reported must have meet specified criteria. Clear Identification of Financial Benefits MFRS 8 is important because stakeholders can view the activities of the segments and see how its adds to the development and growth of the firm, since MFRS 8 requires the firm to report the profit or loss of the segments assets and also it requires the firm to quantify the segment liabilities and also to disclose information about countries where its earns revenues and information about the firms major customers, so by disclosing this information stakeholders are able to make informed decisions about the firm Entity Wide Disclosures MFRS 8 is important because it facilitates entity wide disclosures because in doing the analysis of a large firm there need to be a breakdown of the segments performance in order to properly evaluate individual operating segments to determine how resources should be allocated to the most effective segments and where to moves resources from the less performing segments to a higher performing...
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...Case 1 Issue 1: Identify the Operating Segments for SPI According to ASC 280-10-50-1 an operating segment is a component of a public entity that has all of the following characteristics: • It engages in business activities from which it may recognize revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity). • Its operating results are regularly reviewed by the public entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. • Its discrete financial information is available. According to these rules SPI has 7 operating segments, they include the following: shampoo, cosmetics, diapers, paper towels, Jazzy Juice, Blasto Energy Drinks, and fruit and granola snacks. Issue 2: Determination of Reportable Segments — Based on the information provided, identify the facts that are useful and develop initial thoughts as to which of SPI’s operating segments can be aggregated. Provide support for your initial thoughts regarding aggregation of operating segments and identify additional information that may be needed in order to reach a conclusion. According to ASC 280-10-50-(11-13) Two or more operating segments may be aggregated into a single operating segment if they are similar in the following areas: • The nature of the products and services • The nature of the production processes • The type or class of customer for their...
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...An operating segment is defined as a component of a business that engages in business activities, earns revenues, and incurs expenses. Other characteristics of operating segments include results being regularly reviewed by the entity’s decision maker, which the title may vary from entity to entity. This is done to allocate resources and assess performance. Financial information must also be available to the public for review. After reviewing the case, Sell-It Products Inc. has a total of seven operating segments that are in accordance with the information listed about operating segments. The seven segments include Shampoo, Cosmetics, Diapers, Paper Towels, Jazzy Juice, Blasto Energy Drink, and Fruit & Granola Snack. According to ASC 280-10, a reportable segment is an operating segment or an aggregation of two or more segments that exceeds certain quantitative thresholds. In regards to Sell-It Products Inc., there are four reportable segments which include Cosmetics, Paper Towels, Blasto Energy Drink, and Jazzy Juice Juice and Fruit & Granola Snack. The threshold test that was performed was the revenue test which means that the segments revenue must be at least 10 percent of combined revenue of all segments. Although Jazzy Juice and Fruit & Granola Snack did not pass the revenue test, I made an exception for them because they have similar characteristics when compared to each other. I categorized them as aggregated. Together, they meet the threshold for the revenue and are now...
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...passion for food, traditional family values and the customized services they offered to the SLF residents. Frank was named CEO of the company over his other siblings including his sister Jennifer Calveta who was more suited for the job, now Frank was left with the option of expanding their business by acquiring Great South West Dining (GSD) or to enter into the hospital segment and diversify their business and at least try and come close to meeting his promise to his father. Analysis The United States Census Bureau’s survey showed that only 25% of the total SLF’s in USA had contracted to food services, this survey alone shows that there is a great potential for growth in the SLF’s segment and therefore it would have been meaningful for Frank to buy Great South West Dining but the eye popping debt figures that came before him alone are sufficient to say that it would not be a feasible solution and it would be much better decision for Frank to diversify Calveta Dining Services by extending to other segments, like providing food services to the hospitals. Few reasons why Frank should extend to other segments are. 1. Frank considered moving into the Education Sector, ad...
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...Case Report-1: The Fashion Channel 1) What is expected outcome of each of the targeting scenarios? (complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios) Ad Revenue Calculator | | | | | | | Current | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 | TV HH | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | Average Rating | 1,0% | 1,0% | 1,2% | 0,8% | 1,2% | Average Viewers (Thousand) | 1100 | 1100 | 1320 | 880 | 1320 | Average CPM* | $2,00 | $2,00 | $1,80 | $3,50 | $2,50 | Average Revenue/Ad Minute** | $2.200 | $2.200 | $2.376 | $3.080 | $3.300 | Ad Minutes/Week | 2016 | 2016 | 2016 | 2016 | 2016 | Weeks/Year | 52 | 52 | 52 | 52 | 52 | Ad Revenue/Year | $230.630.400 | $230.630.400 | $249.080.832 | $322.882.560 | $345.945.600 | Incremental Programming Expense | | $ - | $ - | $ 15.000.000 | $ 20.000.000 | | 2006 Actual | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 | Exhibit 5: Financials | | | | | | Revenue | | | | | | Ad Sales | $230.630.400 | $230.630.400 | $249.080.832 | $322.882.560 | $345.945.600 | Affiliate Fees | $80.000.000 | $81.600.000 | $81.600.000 | $81.600.000 | $81.600.000 | Total Revenue | $310.630.400 | $312.230.400 | $330.680.832 | $404.482.560 | $427.545.600 | | | | | | | Expenses | | | | | | Cost of Operations | $70.000.000...
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...equipment and many more miscellaneous items are listed, bought or even sold on a daily basis. In other word, eBay generally target online auction and shopping communities. However, eBay also has business strategies to target specific segment of the market. From the entire wide range of items available, eBay originally was set up to promote and sell antique and collectibles. This causes eBay to focus more on this segment market. Another key market segment for eBay would be the car and motor enthusiast. This is because of the unexpected popularity with the users, which is the second most visited segment on the site. Due to this, eBay has been focusing more on these two segments as their primary market target. KEY SEGEMENTS Antiques & Collectibles Started out to be selling collectibles and antiques with auction-based online sales. These targeted markets are usually antique lovers that are willing to bid very high for a rare item. EBay has established them very well in the market, which until today, antiques, and collectibles generates the highest sales gross. Motor lovers Using credibility of leading car collector Kruse Inc., eBay expanded its categorical offerings with eBay Motors. EBay Motors became one of its most successful target segments with $2,500M Global Gross Merchandise Sales in 2002. FOCUS STRATEGY It is important for every service to have focus strategy as it can help to identify and promote itself, which would set apart with it’s competition. As presented...
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...caters to the three major segments of the power tools business namely, Industrial, Tradesmen, and Consumer. D&B’s market share is almost the same as Milwaukee and Makita in the Industrial and Consumer segment but with regards to the Tradesmen segment, B&D is behind. Despite its major presence in the industry, it faces a problem in the Tradesmen segment which only holds about a 9% share. This problem has been caused by a bad perception of the tradespeople regarding B&D due to its expansion into the Consumer segment shown by its successful Dustbuster® hand-held vacuum. D&B’s expansion to the Consumer segment has proved to be successful but it has also affected D&B’s image with the tradesmen who worked on residential construction. One tradesman stated, “. . . Black & Decker makes a good popcorn popper, and my wife just loves her Dustbuster, but I’m out here trying to make a living. . .” Tradesmen such as, electricians, plumbers, framers, roofers and etc are workers who are expected to show up to work with their own tools and this segment usually purchase their tools from home centers; and they regularly purchase tools for replacement basing their choices on conversations between co-workers at the job site. The fact that the households of these tradesmen use D&B as house appliances makes them think that D&B products won’t hold up in the work place making them choose other brands that focused more on the tradesmen segment. D&B looked for...
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...does the product aid in consumers doing?). In distinguishing the difference between the two Nike’s segments (sports and casual users), it is glaringly clear that each of the segments would have it completely the opposite ways. To the athletes, a shoe is a tool for them in achieving their goal and winning competitions. The athletes would be looking at the benefits that certain shoes would give them and have an edge over the other shoes. Better stability, better protection, better cushioning, etc. In turns these shoes would give them added value because with better stability would give better performance (more speed, etc), better protection would give them the assurance and avoidance of injury, better cushioning might give them the comfort that enables them to go the extra miles in achieving their goals. However, to the casual users, these attributes, benefits and values might have completely different meanings. The attributes are likely to emulate their heroes or even just following some trends. The benefits are it gives them status, recognition and to fit in. The value that these shies give them is no more than self-esteem. 1b. 1c. Marketers should carefully analyze the customer-product relationship in each target segment and develop marketing and promotion strategies accordingly that is appealing and appropriate to each one of them. Since the two segments are likely to be two very different types of personalities (athletes are generally a very different...
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...raise the debt-to-capital ratio to 55% to 60%. If they leave the problem unaddressed, they might risk bankruptcy in the future. Analysis: Both of Champion and Cameron Iron Works were in related industries, automotive and petroleum equipment, which were profitable businesses. Cooper Industries was already doing those two businesses. For the opportunities identified in the case have to do with the purchase of Champion and Cameron Iron Works, both of them have a strategic fit with Cooper Industries’ long-term plans. For example, Champion has a poor management, old technology, and failures at diversification. But Cooper Industries is good at this field. Cameron Iron Works had a biggest Compression and Energy Business Segment until 1981. But it was the smallest segment of Cooper Industries. Moreover, Cameron Iron Works is a strong competitor of Cooper Industries. By buying its Cameron Iron Works, Cooper Industries would only have major competitor. Also, it would help Cooper Industries to manage its Five Forces, such as avoids high entry barriers and eliminates a competitor. Recommendation: In my point of view, Cooper Industries should buy both Champion and Cameron Iron Works. First of all, Cooper...
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...because it directly relates to those who will buy the data plans and ultimately use the product. It’s important to identify these segments and do their own marketing to help promote the use of the services to increase revenues. If they don’t get end user to use it telecom companies will drop them as the value to both the consumer and the telecom will not be profitable. 2. Sara : Married 42 has kids works part time, not tech savey, needs the technology to be easy to use. Her key features tend to put her into segment 1 Steve: 27 single late adopter of technology convenience is important to him thus most likely fits into segment 4 as he doesn’t have the newest technology and his adoption is slower. Regina most likely fits into segment 3 as value for the computer is quite high and she disagrees highly with q1, she also would search for the best price when looking to buy as she is younger and does not necessarily have the disposable income to upgrade. The advantage to doing both the qualitative and quantitative data is they both may show different types of customers you may not have originally thought of. Qualitative data really shows you who a person is and what they do however quantitative data substantiates the qualitative or turns it on its head because it is what the consumer perceives. Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 yes they seem very interested and have higher responses to wanting to use the service no They have a very low...
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...The cafe serves meals, drinks, salads, desserts, snacks and sandwiches. The students are paying for the meals through students cards via an electronic payment process within the campus area. During the summit time, the waiting time creates difficulties for the students. The cafe is facing trouble of waiting time and students have already started looking for an alternative of the cafe. Mah is one of the students who is searching a way to solve the issue in order to suggest to the management of the campus so that they have noticed this issue. These service supervisors come under the oversight of manager that serves all the home services segments. The services segment has its own two levels that include the home advisers along with assistant home supervisor. However, ARM and RA who is the full-time supervisor met to talk about the issues with the home. Nottingham Hall and Cambridge Hall are sharing a number of services so that is resulted in a single supervisor that is supervising both of the residencies. RA’s and ARM are met bi-weekly to talk about the issues of Nottingham Hall residencies and Cambridge Hall. The cafeteria was designed in the manner that it has three waiting lines such as L1, L2, and L3. Line 1 is devoted to precook meals and there is the record of serving food things. Line 2 is dedicated for the interactional cooking station where students are select the key ingredients for their meals. However, line 3 is dedicated for payment of the meals. These...
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...BizLabs – Student Manual Business Strategy Simulation Table of Contents 1 INTRODUCTION ................................................................................................................................................ 4 1.1 COMPANY DEPARTMENTS ......................................................................................................................... 4 1.1.1 RESEARCH & DEVELOPMENT (R&D) ........................................................................................................................ 4 1.1.2 MARKETING ..................................................................................................................................................................... 4 1.1.3 PRODUCTION ................................................................................................................................................................... 4 1.1.4 FINANCE ........................................................................................................................................................................... 4 1.1.5 HUMAN RESOURCES ........................................................................................................................................................
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...Myntra.com has very clearly sorted the information element on its sight, where the each segment has been covered very clearly in its landing page or home page. This covers a large portion of the information that a customer would look for while shopping online. Myntra has covered from the most basic information to more complex information that advanced customers would look for. The below are listed as basic information 1) Information on apparels based on gender 2) Information on discounts 3) Information on sale The more advanced information like 1) Designer ware 2) Beauty tips 3) Fashion trends 4) Information on designers 5) Information on new launches from brands It also carries information on all that the customer would want to know on what are the current trends. The information on the site is elaborate with regard to the fashion and apparel, and one more advantage of the information on Myntra is that it is much sorted and the customer does not have to look for in sub pages. This makes the experience on Myntra easy to navigate and a pleasure. It also covers information on shipping, tracking the consignment, cancellation and returns Price Like all other .com organizations the price is very clearly displayed on Myntra for each and every product and if compared to the market it is competitive. The price range displayed is vast which gives every segment an opportunity to feel as part of the site. This is indicated by the presence of products...
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...services to satisfy the consumer. In particular PetSmart has been able to provide products for US customers’ pets in which other countries would not find necessary. During the past two years, PetSmart’s services segment grew from $300 million per year to $525 million per year. Today, the services segment represents approximately 10% of total revenues.PetSmart is focusing on growing its services segment. If the services segment continues to grow at the same rate in the next two years as it did in the past two years, and if total sales remain “flat”, what percent of total sales will be from the services segment by the end of the 2nd year going forward? Services segment for the past 2 years grows at a rate of $300 million to $525 million. Growth percentage = (525 million)/(300 million) = 1.75% for past 2 years. Services segment growth for the next 2 years =1.75% ($525 million) = $919 million. If the total sales remain “flat” at $5 billion in overall sales, the percent of services segment will be ($919 million)/($5 billion) = 18%. If the services segment does grow as indicated in #1, I think there is justification for a projection of overall sales to grow beyond the $5.1 billion level. The 8% growth of services segment accounts for $394 million in sales for the services segment alone. The $394 million...
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