After you have identified the reportable segments after applying the 10% revenue, assets, profit/loss: you have to determine if the segments you have reported is sufficient by applying the 75% sufficiency test.

eg total consolidated sales is $1000

75 % of consolidated sales is 750

step 1: add the figures for consolidated sales for the reportable segments(say A,B,C) 

step 2: lets say adds upto 800, you are done!

step 3: lets say adds upto 700, then you need to report another segment(s) so that the consolidated sales adds upto 800, which one(s) will you pick, the one(s) with the larger consolidated sales figure. Lets say segment D's consolidated sales is 110 and segment E's consolidated sales is 90, you would pick segment D to be one of the reportable segments to comply with the 75% reporting sufficiency test even though it does not meet any of the 10 % tests.

Hope that helps!

BEC passed

FAR 7/2/09