Key Topics: Ethical issues, Operating segments

Standards covered: ACCA / IESBA code of ethics, IFRS 8 operating segments

Description: The question explores the breach of fundamental principles in relation to closeness of relationships. You are expected to consider which principles have been sacrificed and therefore what threats have arisen. The question requires you to bring some knowledge to your answer in explaining what the definition of an operating segment is as well as the aggregation of an operating segment. You are also required to discuss the identification of reportable segments and for each section you need to conclude on 4 different divisions set out in the scenario to ultimately conclude on which divisions would be reported separately.