Abstract
Segmental reporting involves the reporting of disaggregated financial information, such as turnover, profits, assets etc., about a business entity. This information is generally analysed in two ways:
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(a)
by industry segment. Industry segments are the distinguishable components of an entity each engaged in providing a different product or service, or a different group of related products or services, primarily to customers outside the entity;1
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(b)
by geographical segment. Geographical segments are the distinguishable components of an entity engaged in operations in individual countries or groups of countries within particular geographical areas.2
Segmental reporting has been debated since the early 1960s; that period being significant for the rapid emergence and growth, especially in the US, of the multinational conglomerate business entity.
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References
IAS 14, Reporting Financial Information by Segment, IASC, August 1981, para. 4.
Ibid.
R. K. Mautz, Financial Reporting by Diversified Companies, Financial Executives Research Foundation, 1968, p. 94.
Organisation for Economic Co-operation and Development, International Investment and Multinational Enterprises, OECD, issued 1976, revised 1979.
CA 67, s 17.
Ibid., s 20.
CA 81, Sch. 1, para. 55(2).
Ibid., para. 55(5).
The Council of The Stock Exchange, Admission of Securities to Listing, Section 5, Chapter 2, para. 21(c).
The Council of The Stock Exchange, The Stock Exchange Unlisted Securities Market, General Undertaking, para. 10(c).
Admission of Securities to Listing, Section 5, Chapter 2, para. 21(c).
ED 45, Segmental reporting, November 1988.
SSAP 25, Segmental reporting, June 1990.
ED 45, para. 37(a).
SSAP 25, para. 1.
Ibid., paras. 3 and 40.
Ibid., paras. 4 and 41.
Ibid.,, para. 35.
Ibid., para. 38.
Ibid., para. 43.
Ibid., paras. 7 and 8.
Ibid., para. 8.
Ibid., para. 12.
Ibid., para. 15.
Ibid., para. 16.
Ibid., para. 9.
SFAS 14, Financial Reporting for Segments of a Business Enterprise, December 1976, para. 15.
SSAP 25, para. 34.
Ibid.
Ibid., para. 34(a).
Ibid., para. 34.
Ibid., para. 44.
The exposure draft, Segmental Reporting by Banks was published in 1991.
See CA 85, Schedule 9, Part I para. 76.
SSAP 25, para. 34.
Ibid., para. 22.
Ibid., para. 21.
Ibid., para. 24.
Ibid., para. 25.
Ibid., para. 37.
Ibid., paras. 4 and 41.
Ibid., para. 36.
Ibid.
Ibid.
Ibid., para. 23.
Ibid.
TSB Group PLC, Accounts 1991, p. 6.
Reckitt & Colman plc, Annual Report 1989, p. 40.
SSAP 9 para. 27, which in turn refers to the statutory formats in CA 85 Sch. 4.
SFAS 14, Financial Reporting for Segments of a Business Enterprise, FASB, December 1976, para. 91.
Ibid., para. 13.
Ibid., para. 10.
Ibid., para. 39.
L.C.L. Skerratt and D.J. Tonkin (eds.), ICAEW, Financial Reporting 1987–1988, A Survey of UK Published Accounts, p. 151.
SSAP 25, para. 23.
Ibid., para. 22.
Ibid., para 34.
FRED 1, The structure of financial statements — Reporting of financial performance, ASB, December 1991, para. 70.
SSAP 25, para. 24.
Ibid., para. 25.
Amending standards comprise: SFAS 18, Financial Reporting for Segments of a Business Enterprise — Interim Financial Statements; SFAS 21, Suspension of the Reporting of Earnings per Share and Segment Information by Nonpublic Enterprises; SFAS 24, Reporting Segment Information in Financial Statements That Are Presented in Another Enterprise’s Financial Report; and SFAS 30, Disclosure of Information about Major Customers.
SFAS 21, Segment Information by Nonpublic Enterprises, FASB, April 1978, paras. 12 and 13.
SFAS 14, para. 23.
Ibid., para. 24.
Ibid.
Ibid., para. 26.
Ibid., para. 10(e).
Ibid., para. 15.
Ibid.
Ibid., para. 22.
Ibid., para. 17.
Ibid., paras. 17–19.
Ibid., para. 20.
Ibid., para. 32.
Ibid., para. 31.
Ibid., para. 33.
Ibid., para. 36.
Ibid., para. 27.
SFAS 30, Disclosure of Information about Major Customers, FASB, August 1979, para. 6.
IAS 14, para. 2.
Ibid.,, para. 18.
Ibid., para. 22.
Ibid.
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© 1992 Ernst & Young
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Davies, M., Paterson, R., Wilson, A. (1992). Segmental reporting. In: UK Gaap. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-12998-0_16
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