Welcome to the chapter on segment reporting! This chapter is designed to provide a comprehensive overview of this important topic. In this chapter, we will be exploring the following four topics:
Introduction to Segment Reporting
This section will provide a brief introduction to the concept of segment reporting, including its purpose and why it is important for financial analysts and other users of financial statements.
The Objectives of Segment Reporting and Applicable Accounting Standards
In this section, we will delve deeper into the objectives of segment reporting, as well as the accounting standards that apply to this type of reporting.
Coverage of Segmental Reporting
This section will explore the various areas that may be covered in segmental reporting, including operations in different industries, domestic and foreign operations, export sales, and major customers.
Determining Reportable Segments
Finally, we will examine the criteria used to determine which segments of a business are reportable, including the revenue test, operating profit test, and asset test.