P7 P7 All notes

75% External revenue test
If total external revenue of all reportable segments identified is less than 75% of the total consolidated revenue, additional
segments should be identified as reportable segments until at least 75% of total revenue is included in reportable segments.

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Internal based segments
Vertically integrated segments (those that earn a majority of their revenue from intersegment transactions) may be, but need not
be, reportable segments.
If not separately reported, the selling segment is combined with the buying segment.
Illustration
Product
External Revenue
Internal Revenue
Profit
Assets
Liabilities
The Nose picker
2,000
30
(100)
3,000
2,000
The Earwax extractor
3,000
20
600
8,000
3,000
Other Products
5,000
50
1,050
20,000
14,000