Question

Outline the main difficulties with the disclosure of segmental information and outline possible arguments against the disclosure of segmental information.

5

Answer 1

Hey there

Let me help you with this question on segmental reporting...

We need to discuss the difficulties with disclosure of Segmental information and possible arguments against the disclosure of segmental information.

Segment reporting is the reporting of the operating segments of a company in the disclosures accompanying its financial statements. Segment is a portion of a business that generates its own revenues and expenses and has its own assets and liabilities.

If investors are provided with information about the profitability, risk and growth of the different segments of a company’s operations, they will be better able to assess the earnings potential and the risk of the company as a whole.

However, there are certain difficulties associated woth segment reporting. Let us discuss :

i hope the solution is clear to you now...do let me know in case of any concerns.

All the best !!

Happy Studying :)