• paul of Others

    Segments are organizational units for which information is reported to the board of directors and CEO unless those organizational units are not along product/service or geographical lines, in which case uses the next lower level of internal segmentation that reports product and geographical information.

    Never construct segments solely for external reporting purposes.

    Segments must equal at least 75% of consolidated revenue.

    Public companies must report information along with product and service lines and along geographical lines.

    One basis of segmentation is primary, and the other is secondary.

    Segment accounting policies the same as consolidated.

    Disclosures for the primary segment:

    • revenue (external and intersegment shown separately);
    • operating result (before interest and taxes);
    • carrying amount of segment assets;
    • carrying amount of segment liabilities;
    • cost to acquire property, plant, equipment, and intangibles;
    • depreciation and amortization;
    • non-cash expenses other than depreciation;
    • a share of profit or loss of equity and joint venture investments;
    • the basis of inter-segment pricing.

    Disclosures for the secondary segment:

    • revenue (external and intersegment shown separately);
    • carrying the amount of segment assets;
    • cost to acquire property, plant, equipment, and intangibles;
    • the basis of inter-segment pricing.

    References:
    Summaries of International Accounting Standards - ICJCE. https://www.icjce.es/images/pdfs/TECNICA/C02%20-%20IASB/C203%20-%20IFRS%20y%20SIC/Summaries%20of%20International%20Accounting%20Standards.doc 

    SSAP 25: Interim Financial Reporting. http://app1.hkicpa.org.hk/professionaltechnical/accounting/standards/ssap25.pdf

    Posted