ACCA Strategic Business Reporting (SBR) Practice Exam 2025 - Free ACCA SBR Practice Questions and Study Guide

The significant profit or loss threshold for reporting segments is established by the International Financial Reporting Standards (IFRS), specifically IFRS 8, which deals with operating segments. According to this standard, a reporting segment should be considered significant if it meets certain thresholds related to profit or loss.

The correct choice identifies the threshold as 10% of the combined profit of all segments that have reported profits. This means that if a segment’s profit or loss is 10% or more of the total profit from all operating segments with reported profits, it is deemed significant and must be reported separately. This principle helps ensure transparency and enhances the usefulness of financial statements for users by providing detailed insights into how different segments contribute to the overall financial performance of the company.

The other options do not align with IFRS requirements for segment reporting. For instance, while other metrics like total company revenue are relevant in different contexts, they do not specifically define the threshold for reporting profits or losses in relation to segments. The other percentage thresholds provided do not reflect the criteria established by IFRS for assessing the significance of profit or loss in reporting segments.