A number of companies voluntarily prepare segment reports beyond what is required by regulation. Given the...

A number of companies voluntarily prepare segment reports beyond what is required by regulation. Given the difficulties faced by regulators in developing rules for segment reporting, is regulation really necessary and/or desirable?

Expert Solution

In my opinion, rules for segment reporting is essential because:-

1. It ensures transparency in financial statements- Transparency is the cornerstone of financial reporting. Stakeholders are dependent on them for monitoring the organizations performance. Hence, regulations are pivotal for segment reporting.

2. Segment reporting data is used by investors in valuation models, so that they can decide and evaluate about their investments in company.

3. Segment reporting standards were set in 1990's, hence there is a need for regulation because they are not updated as per latest requirements of stakeholders.

4. Segment reporting disclosures are not generally reconciled with financial statements, and they are generally manipulated by companies as per their benefits.

Hence, segment reporting should be regulated to make it reporting better and correct.

In case of doubt please comment. It will be cool if you hit like.

ekkarill92 answered 5 months ago

Registered Companies are required to circulate annual reports to members of the company. Some of the...

Registered Companies are required to circulate annual reports to members of the company. Some of the most important components are the Auditors Report and the Directors Report. (i) Briefly explain the type of opinion that may be expressed in the reports and how such opinions affect the organization. (ii) The Directors Report is a key component of the Annual Financial Report of a company. State and explain any four (4) of the contents of the Directors Report. ( iii) You...

What are the positive and negative effects of government legislation/regulation? Assume that a given regulation was...

What are the positive and negative effects of government legislation/regulation? Assume that a given regulation was needed and implemented, what method would you propose for removing that regulation from the books when the need had passed? (how would you stop the pendulum from staying too far in the other direction?)

Public companies are required by the SEC to file which of the following reports quarterly? 10-K...

Public companies are required by the SEC to file which of the following reports quarterly? 10-K 10-Q 8-K All of the above Which one of these ratios is a MARKET RATIO Question 6 options: Current Ratio Debt/EBITDA Accts Receivable Days on Hand Operating Profit Margin Price to Earnings Ratio Return on Capital The product (or the output) of the DuPont model is: A profitability ratio An efficiency ratio A leverage ratio A return ratio All of the above Revenue and...

A number of companies now produce Corporate Social Responsibility reports. They are sometime also referred to...

A number of companies now produce Corporate Social Responsibility reports. They are sometime also referred to as Sustainability reports. Briefly comment on the three main sections covered in the report

-what is the relation with consumer behaviour and companies marketing strategy? - how a company segment...

-what is the relation with consumer behaviour and companies marketing strategy? - how a company segment its market?

Question 1 - (What is the name of the SEC regulation that requires public companies to...

Question 1 - (What is the name of the SEC regulation that requires public companies to share information with all investors at the same time? ) A) Regulation FD B) the Investment Company Act of 1940 C) the Sarbanes-Oxley Act D) the Investment Advisors Act of 1940 E) the Securities and Exchange Act of 1934 Question 2 - The Securities Act of 1933: A -requires all companies to comply with IRS rules B- requires full disclosure of information about new...

What is the role of regulation in this case? Given that Nestlé was protected by ownership...

What is the role of regulation in this case? Given that Nestlé was protected by ownership rules whereas the British companies were not allowed to merge, is this fair? Is it relevant to apply ‘national interest’ to the chocolate industry? case: The Chocolate factory (harvard case study) Morten Bennedsen, Deborah Cadbury

what reports are filed with the SEC by public companies? Under what circumstances are they filed?

8- Explain what happens to the number of elements in a line segment if we reduce...

8- Explain what happens to the number of elements in a line segment if we reduce the length of a ruler by a factor? 9- Explain what makes a fractal self-similar. 10- Explain what it means to have a fractal dimension between 1 and 2. # Could you please answer all questions, if you know only one question please do not answer it. I'm saying it because I don't have enough chances to ask again. Thank you for your hard...

Number of words required: 950 Resources: Pull the financial statements of 3 companies in the industry...

Number of words required: 950 Resources: Pull the financial statements of 3 companies in the industry that you are interested in entering. Try to ﬁnd companies that are pursuing different strategies. · Examine Purina's business models and see if you can identify the drivers that they are influencing to achieve their strategy. · Explain what you learned about Purina's revenue model, cost model, product mix, distribution channels, partners, target customers, and value proposition. · Examine Blue's business models and see...

Question