Tag Archives | Segmentation

Selecting an Appropriate Basis of Segmentation

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 [...]

By |2016-06-18T07:01:36+00:00June 18, 2016|Segment Reporting|Comments Off on Selecting an Appropriate Basis of Segmentation

Bases of Segmentation of a Diversified Company

A diversified company, generally speaking, can be dissected according to one or more of the following bases: Base # 1. Organisational Division: The term 'division' has different meanings in different companies. Most commonly, the term 'division' refers to the use of company operating structure or organisation charts as a basis for segmenting operations into reporting units. A division is a [...]

By |2016-06-18T06:59:44+00:00June 18, 2016|Segment Reporting|Comments Off on Bases of Segmentation of a Diversified Company
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