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ABC Ltd. has four business components with the following share of totals — Pharma: 63%/67%/61% (rev/profit/assets), FMCG: 3%/8%/28%, Ayurveda: 2%/7%/4%, Others: 32%/18%/7%. Which segments must be REPORTED SEPARATELY under the 10% quantitative thresholds?
APharma and Others only — FMCG passes none of the three tests
BPharma, FMCG and Others
CAll four segments — partial qualification is sufficient
DPharma only — it is the only segment passing all three tests
Answer & Solution
Correct answer: B. Pharma, FMCG and Others
A segment is separately reportable if it meets ANY ONE of the three 10% tests (revenue, profit/loss, assets). Pharma passes all three (63/67/61). Others passes revenue (32) and profit (18). FMCG fails revenue and profit but passes the asset test (28%). Ayurveda fails all three (2/7/4). So Pharma + FMCG + Others are reportable; Ayurveda is folded into "all other segments."
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