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An entity's external revenue from operating segments individually meeting the 10% threshold totals only 65% of the entity's total external revenue. Under Ind AS 108, the entity must:
AAggregate the remaining 35% into a single reportable segment, irrespective of dissimilarity
BIdentify additional operating segments as reportable (even if they don't meet 10%) until at least 75% of external revenue is included in reportable segments
CReport the entity as a single segment because no clear majority of segments meets all thresholds
DStop the analysis — once the 10% tests are applied, no further reportable segments are required
Answer & Solution
Correct answer: B. Identify additional operating segments as reportable (even if they don't meet 10%) until at least 75% of external revenue is included in reportable segments
Para 15 of Ind AS 108 imposes a hard 75% floor: external revenue of REPORTABLE segments together must be ≥ 75% of the entity's total external revenue. If the 10%-passers reach only 65%, the entity must add further operating segments (even sub-10% ones) as reportable until the 75% floor is crossed.
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