prepare any necessary entries in e s financial statements as at dec 31 for the years 613394

Reaching the threshold of 75% of external revenue

In above, Units 1, 2, 5, 7, 8 and 9 were identified as reportable segments. The total external revenue attributable to these reportable segments is £230m. This is only 74.2% of total external revenues and therefore less than the required 75% of total external revenue of £310m.

The entity is therefore required to identify additional segments as reportable segments, even if they do not meet the quantitative thresholds in 3.2.2 above. Unit 3, with external revenue of £15m (4.8%), Unit 4″s external revenue of £30m (9.7%) and Unit 6″s external revenue of £35m (11.3%) would each take the total above the required 75%. The entity can choose to present any of these as a reportable segment, leaving the others to be combined to form the item for ‘all other segments’.