What percentage of reported revenue indicates a reportable segment based on the 10 percent test?

The threshold for determining a reportable segment based on the 10 percent test is indeed 10 percent of the combined revenue of all operating segments. According to the guidance in ASC 280, a segment is considered reportable if either its revenue, profit or loss, or assets exceeds 10 percent of the combined totals for all operating segments that are not classified as reportable segments.

This 10 percent benchmark is critical in segment reporting as it ensures that important segments of the business are highlighted in financial statements, allowing stakeholders to make informed decisions based on the performance of the company’s significant parts.

Other percentages listed do not meet this criterion for reportability under the 10 percent test, as segments must exceed that specific 10 percent threshold of total revenue to be recognized as reportable. Hence, the 10 percent figure establishes the minimum threshold that reflects a segment's relative significance in generating revenue within the broader business structure.