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Under the profitability (result) test of AS 17, a segment is reportable if its segment result is at least 10% of which of the following?
AThe combined result of only the profit-making segments of the entity
BThe net result of all business and geographical segments combined
CThe greater, in absolute amount, of total profit or total loss of segments
DThe combined total assets of all segments shown in the balance sheet
Answer & Solution
Correct answer: C. The greater, in absolute amount, of total profit or total loss of segments
1. AS 17 compares each segment's result against a base.
2. The base is the greater, in absolute amount, of (i) the combined result of all segments in profit, or (ii) the combined result of all segments in loss.
3. A segment is reportable if |its result| is 10% or more of that base.
_Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 MCQ — Case Scenario I, AS 17 Segment Reporting._
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