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PTU Ltd has 6 segments. External sales (₹L): P 66, Q 94, R 6, S 5, T 70, U 9. Inter-segment sales: P 10, Q 5, R 10, S 10, T 10, U 5. Result (₹L): P 22, Q 4, R (4), S 3, T 20, U 1. Assets (₹L): P 112, Q 147, R 28, S 28, T 21, U 14. After identifying the reportable segments, the external revenue coverage check under AS 17 gives what percentage, and is the 75% condition met?
A92%, condition met
B74%, condition not met
C65%, condition not met
D100%, condition met
Answer & Solution
Correct answer: A. 92%, condition met
1. Reportable segments are P, Q, T; their external revenue = 66+94+70 = ₹230 L.
2. Total enterprise external revenue = ₹250 L.
3. Coverage = 230 / 250 = 92%, which is at least 75%, so no additional segment need be added.
_Source: ICAI BoS CA Intermediate Paper 1 (Advanced Accounting), Sept 2025 MCQ — Case Scenario I, AS 17 Segment Reporting._
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