REVENUE

Saint Jayson REVENUE F RO M

School of SEGMENT
F RO M
OUTSIDERS
I N T E R NA L
SALES EXPENSES ASSETS
Professional
A ₱1,000,000.00 ₱500,000.00 ₱2,000,000.00 ₱400,000.00
Studies, a newly
founded entity, B ₱1,600,000.00 ₱200,000.00 ₱800,000.00 ₱300,000.00
has the following C ₱1,200,000.00 ₱300,000.00 ₱400,000.00 ₱300,000.00
operating
D
segments with ₱500,000.00 ₱250,000.00 ₱500,000.00 ₱200,000.00

their E ₱200,000.00 ₱100,000.00 ₱50,000.00 ₱500,000.00

corresponding F ₱50,000.00 ₱20,000.00 ₱350,000.00 ₱1,000,000.00
operating data,
which of the G ₱600,000.00 ₱0.00 ₱900,000.00 ₱250,000.00

segments is/are to H ₱750,000.00 ₱700,000.00 ₱800,000.00 ₱900,000.00

be presented?
I ₱685,000.00 ₱500,000.00 ₱500,000.00 ₱230,000.00
 If the total external revenue of reportable
operating segments constitutes less than 75% of
the entity’s external revenue, additional operating
segments shall be identified as reportable segments
even if they do not meet the 10% quantitative
thresholds until at least 75% of the entity’s external
revenue is included in reportable segments.
Two or more operating segments may be aggregated into single
operating segment if the segments have similar economic
characteristics and the segments share a majority of the following
five aggregation criteria:
a. Nature of product or services;
b. Nature of production process;
c. Type or class of customers;
d. Marketing method or the method used to distribute the
product;
e. Nature of the regulatory environment, for example, banking,
insurance or public utility.
 SEGMENTS REVENUE
An entity has
no intersegment
A ₱2,400,000.00
sales and has the B ₱1,600,000.00
following operating C ₱1,200,000.00
segments with their
corresponding
D ₱720,000.00
revenue, which of the E ₱640,000.00
segments is/are to F ₱560,000.00
be reported?
G ₱480,000.00
H ₱400,000.00
 There may be a practical limit to the number of
reportable segments to be disclosed separately by an
entity beyond which segment information may become
too detailed.

Although no precise limit has been determined, as

the number increases above 10, the entity shall consider
whether a practical limit has been reached.
 If an entity changes the structure of the internal organization in
a manner that causes the composition of the reportable segments to
change, the corresponding information for earlier periods,
including interim periods, shall be restated.

However, no restatement is made if the corresponding

information for earlier periods is not available and the cost to develop
it would be excessive.
 are additional information that is required to be disclosed by all entities if
such information is not provided as part of the reportable segment information.

The entity shall disclose the following:

a. Information about products and services;
b.Information about geographical areas;
c. Information about major customers.
Who is a major customer?

A major customer is a single external customer providing

revenue which amounts to at least 10% of an entity’s external
revenue.
The following may be considered as a single customer:
a. Group of entities under a common control.
b. A government and entities under the control of such
government.
Which is the proper manner of presenting disclosures involving major customers?

Funimation earns most of its revenues from major customer Japanese Otaku, a
Japanese based TV Network.

Funimation has the following reporting segments together with the revenues
earned from a major customer:
a. Advertisement Center – P40,000,000
b. Animation Center - P50,000,000

The total revenue earned from a major customer amounted to P100,000,000

reported by the following segments – Advertisement Center, Animation Center.