In this article we will discuss about selecting an appropriate basis of segmentation. The appropriateness of a basis of segmentation should be decided in terms of its relevance to external users for decision-making purposes. Generally speaking, that segment is material for users which show significantly different rates of profitability, diverse degrees of risk or varying opportunities for growth. The segment [...]
In this article we will discuss about Segment Reporting:- 1. Concept of Segment Reporting 2. Benefits of Segment Reporting 3. Limitations 4. Difficulties. Concept of Segment Reporting: The basic goal of a country's economy is to maximise the economic and social welfare of its citizens through an efficient allocation of resources. In developing economies, chartered by inadequate resources, capital is [...]
The following items of information have been proposed for disclosure in published annual reports of diversified companies: Item # 1. Segment Revenue: According to AS-17 Segment Reporting: Segment revenues are the aggregate of: (i) The portion of enterprise revenue that is directly attributable to a segment, (ii) The relevant portion of enterprise revenue that can be allocated on a reasonable [...]