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As 17
As 17
As 17
ACCOUNTING STANDARD 17
SEGMENT REPORTING
1. Segment:
Business Segment: A business segment is a component of an enterprise
• that is engaged in providing an individual product or services and
• that is subject to risks and returns that are different from other
business segments.
Factors that should be considered in identifying business segments include:
(a) the nature of the products or services;
(b) the nature of the production processes;
(c) the type or class of customers for the products or services;
(d) the methods used to distribute the products or provide the services;
(e) the nature of the regulatory environment
Geographical Segment: A geographical segment is a component of an
enterprise
• that is operating within a particular economic environment and
• that is subject to risks and returns that are different from components
operating in other economic environments.
Factors that should be considered in identifying geographical segments include:
(a) Area of operations
(b) Political boundaries
(c) the currency risks.
2. Reportable Segments
A reportable segment is a business segment or a geographical segment for
which segment information is required to be disclosed by this Statement.
Reportable segments are classified in the following two parts for the purpose
of disclosures
a) Primary Reportable Segments
b) Secondary Reportable Segments
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Based on segment asset: Segment Assets is 10% (or) more of total segment
assets
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Attention:
a) Segment revenue is the aggregate of External Sale and Inter segment
sales
b) Segment result is segment revenue less segment expense.
c) Segment Assets are non-current assets and current assets of the
segments.
d) Segment Revenue, Expense, Assets and Liabilities does not include:
• Extraordinary items as defined in AS 5
• Investment related Items
• Tax Related Items
• Head-office related Items expenses, and other items that relate to
the enterprise as a whole.
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5. Disclosure Requirement
Segment report may have 2 parts if there is matrix form of organisation
a) Primary segment report
b) Secondary segment report
All other
RS RS Reconciling Total
segments
1. Revenue
External revenue XXX XXX XXX XXX
Inter segment revenue XXX XXX XXX XXX
Other operating Revenue XXX XXX XXX XXX
Segment revenue XXX XXX XXX XXX
Less: Inter segment revenue XXX
Entity revenue as per SOPL XXX
2. Results
Segment revenue XXX XXX XXX XXX
Less: Segment Expense XXX XXX XXX XXX
Segment results XXX XXX XXX XXX
Less: Interest exp XXX
Less: HO Expenses XXX
Add: Unallocated Income XXX
Add/less: Exceptional items XXX
Profit before tax
Less: Tax expenses XXX
(a) Current tax XXX
(b) Deferred tax
Profit for the period
XXX
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3. Asset XXX
Segment Non Current asset XXX XXX XXX XXX
Segment current asset XXX XXX XXX XXX
Segment assets XXX XXX XXX XXX
Add: DTA XXX
Add; Investment XXX
Add: Unallocated assets XXX
Total Assets
XXX
4. Equity & Liability
Segment borrowing XXX XXX XXX XXX
Segment current liability XXX XXX XXX XXX
Segment liability
XXX XXX XXX XXX
Add: DTL
XXX
Add: Unallocated liabilities
XXX
5. Other disclosures
Capital expenditure XXX XXX XXX XXX
Depreciation & amortization XXX XXX XXX XXX
Other non-cash exp XXX XXX XXX XXX
All other
Secondary Segment RS RS Reconciling Total
segments
External sale XXX XXX XXX XXX
Segment assets XXX XXX XXX XXX
Segment capital expenditure XXX XXX XXX XXX
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