In this article we will discuss about:- 1. Introduction to Segment Reporting 2. Guidelines for Segment Reporting 3. Information to be Disclosed by Operating Segment 4. Explanation of Measurement. Introduction to Segment Reporting: To facilitate the analysis and evaluation of financial data, in the 1960s several groups began to push the accounting profession to require disclosure of segment information. Not [...]
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 [...]
AS-17 Segment Reporting issued by ASB of ICAI has the following guidelines on identifying reportable segments: Guideline # 1. Primary and Secondary Segment Reporting Formats: 1. The dominant source and nature of risks and returns of an enterprise should govern whether its primary segment reporting format will be business segments or geographical segments. If the risks and returns of an [...]