Define an operating segment, Accounting Basics

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Define an operating segment

Response to the following problem:

Levens Co. operates in several distinct business segments. The company does not have any reportable foreign operations or major customers.

Required:

1. What is the purpose of operating segment disclosures?

2. Define an operating segment.

3. List the amounts to be reported by operating segment.

4. How would your answer to requirement 3 differ if Levens Co. prepares its segment disclosure according to International Financial Reporting Standards?.

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Accounting Basics: Define an operating segment

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Accounting Basics: Define an operating segment

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