Question

Discuss the importance of Segmental Reporting

Answer 1

Segmental reporting is very important for various stakeholders. Followings points show the important of segment reporting;

1. Segment reporting is very helpful in showing performance of the company in real time basis.

2. Segment reporting is very helpful in finding out risks and negative points of the company.

3. With the help of segment reporting, investors & other stakeholders can make better decision about the company.

4. With the help of segment reporting we can make quick & immediate corrective actions for improving quality of the operations of the company.

5. With the help of segment reporting various stakeholders can get quick & precise financial information about the company etc.

Thus we can say that with the help of segment reporting, we can get various advantages but it is also true that segment reporting have some its own limitations. But overall segment reporting gives various advantages to the various related parties.