Operating or Reportable Segment?

You are an operating segment if you:

1. Have discrete financial information
2. Earn revenues & incur expenses
3. Are reviewed regularly by COO

But are you a reportable operating segment?

Test yourself! You are reportable if you are pass one of the following:

1. 10% size threshold: Your revenue/net income/asset is > 10% of the respective items mentioned for the company as a whole
2. 75% reporting sufficiency: if you and other segments combined revenue amount to at least 75% of the total external revenue

Please remember that only public companies are required to disclose such information as well as the following:

• Existence of major customers (over 10% of sales)
• Revenues by product line
• Amount of sales generated in foreign country