In the last chart, the reportable segment should be 'Cloud based services' instead of 'Smartwatches' right? Because 'Smartwatches' didn't pass the test. I guess that's a mistake there? I hope I'm not misunderstanding it.
okay. what I understood that we should first perform10% test to classify all reportable segments in terms of consolidating and external sales combined. but this is not enough yet, we should further go for the external revenue alone. and test whether if these segments which classified as reportable segments during the 10% test represent 75% of the external revenue. if >= 75% proceed. if < 75% then classify another segment in order to reach a capacity of 75%. it is a confusing thing but it seems like that?
In the last chart, the reportable segment should be 'Cloud based services' instead of 'Smartwatches' right? Because 'Smartwatches' didn't pass the test. I guess that's a mistake there? I hope I'm not misunderstanding it.
@farooq abbasi, exactly what I pointed out. It seems like some mistake.
okay. what I understood that we should first perform10% test to classify all reportable segments in terms of consolidating and external sales combined. but this is not enough yet, we should further go for the external revenue alone. and test whether if these segments which classified as reportable segments during the 10% test represent 75% of the external revenue. if >= 75% proceed. if < 75% then classify another segment in order to reach a capacity of 75%. it is a confusing thing but it seems like that?
Thank you for the explanation!
Thanks