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PTU Limited has 6 segments — P, Q, R, S, T & U. External sales total ₹250 lakh, Internal sales ₹50 lakh, Profit ₹46 lakh, Total Assets ₹350 lakh. Which would be the Reportable Segment on the basis of the Revenue Test under AS 17?
AP, Q & T
BP, Q, S & T
CP & T
DP & Q
Answer & Solution
Correct answer: A. P, Q & T
1. Step 1: Revenue Test threshold under AS 17 = 10% of total revenue.
2. Step 2: Total revenue (external + internal) = 250 + 50 = ₹300 lakh; 10% threshold = ₹30 lakh.
3. Step 3: Segments whose total revenue ≥ ₹30 lakh: P (76), Q (99), T (80). Hence reportable: P, Q & T.
_Source: ICAI BoS CA Inter Paper 1 Practice MCQ Paper (89270bos-aps3012-int-p1), Q.1_