Professional Documents
Culture Documents
Presented To: Presented by
Presented To: Presented by
Krutarth
MCS Project
SLIMS
A responsibility centre is an organizational subsystem charged with a well-defined mission and headed by a manager accountable for the performance of the centre. "Responsibility centers constitute the primary
building blocks for management control." It is also the fundamental unit of analysis of a budget control
Responsibility Centers
Cost Centers
Revenue Centers
Profit Centers
Investment Centers
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INVESTMENT CENTER is the responsibility center within an organization that has control over revenue, cost, and investment funds.
It is a profit center whose performance is evaluated on the basis of the return earned on invested capital, e.g.
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Better understand the performance of the enterprise; Better assess the risks and returns of the enterprise; and
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Listed Companies
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Similarity of economic and political conditions; Links between operations pursued in different geographical areas;
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Its revenue from sales to external customers and from transactions with other
segments is 10% or more of the total revenue, external and internal, of all segments;
Segment results make up at least 10% of the total operating profit (loss) of the entity
Segment assets make up at least 10% of the total assets of the entity (group of entities).
Additional segments shall be identified until the threshold of 75% of the sales revenue of the entity (group of entities) is achieved.
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A segment identified as a reportable segment in the immediately preceding reporting period because it satisfied conditions set in above shall continue to be a reportable segment for the current period.
A segment can be reportable if judged by management though it does not satisfy the above conditions.
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Financial statements shall disclose information about both business and geographical segments,
But information disclosure requirements shall differ and depend upon which segments business or geographical - are chosen as primary and secondary.
Segments which have a larger effect on the profit and business risk of the entity (group of entities) shall be primary.
If the profit and business risk of the entity (group of entities) are affected predominantly by business segments, they shall be considered as primary segments, and if they are affected by geographical segments then the latter shall be treated as primary.
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If the profit and business risk of the entity (group of entities) are strongly affected both by business and geographical segments, the entity shall treat business segments as its primary segments.
If the system of internal financial reporting of the entity is based neither on individual goods or services, nor on the economic environment, the entity shall decide at its own discretion whether its business risk and profit is related more to business or geographical segments and which of them
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Zee is one of Indias leading Media &Entertainment companies, and one of the largest producers and aggregators of Hindi programming globally.
It operate 25 TV channels in India and 17 beams in international markets. It is offerings span across various genres: Hindi Entertainment, Hindi Movies, English
With
its
evolution
preferences
continuous
technology platforms, it has positioned as one of the most popular entertainment networks.
Access, effective current year the Group has reconsidered recognizing Access segment separately on the demerger of its cable & DCS business, hence the same is now merged into Broadcasting & Content segment. The relevant figures of last year are also regrouped to show comparable position.
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No. 1
Year 2005-2006
Segments Broad casting &Content Access Education Film, Production & Distribution Others Elimination Broad casting &Content Education Film, Production & Distribution Others Elimination
2006-2007
Access Segment has been discontinued in the current year due to demerges of distribution businesses to WWIL & Dish TV India Limited. Also there was no activity in Film, production and distribution segment
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Segments Broad casting &Content Education Film, Production & Distribution Others Elimination Broad casting &Content Education Film, Production & Distribution Others Elimination
Remark There was no activity in both Film Production and distribution and Elimination segment. There was no activity in Elimination segment
2008-2009
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No. 5
Year 2009-2010
Segments Broad casting &Content Education Film, Production & Distribution Others Elimination Broad casting &Content Education Film, Production & Distribution Others Elimination
2010-2011
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Aggregate the results of two or more segments if they have similar products, services, processes, customers, distribution methods, and regulatory environments.
Report a segment if it has at least 10% of the revenues, 10% of
revenue, then add more segments until you reach that threshold.
You can add more segments beyond the minimum just noted, but consider a reduction if the total exceeds ten segments.
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Total (Enterprise)
1.
Segment Revenue (a) External Sales (b) Inter Segment Sales Total Revenue
255
15
10
15
50
20
35
100
60
30
200
100
315
45
15
15
50
25
35
600
400
16.7
52.5
7.5
2.5
2.5
8.3
4.2
5.5
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Total (Segments )
Total (Enterprise)
3. Segment Result [Profit/(Loss)] 4. Combined results of all Segments in Profit 5. Combined results of all Segments in Loss 6. Segment Result as a % of greater of totals at 4 & 5 above in absolute amount (i.e. 100) 7. Segment Assets 8. Segment assets as % of total assets of all segments
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5 5
(90)
15 15
(5)
8 8
(5)
5 5
7 7 40
(90)
(5)
(5)
(100)
90
15
15 15
47 47
5 5
11 11
3 3
5 5
5 5
9 9
100
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The segments whose total revenue from External sales and inter-
It is to be first identified whether the combined result of all segments in profit or combine result of all segments in loss is greater in absolute amount. From the table it is evident that combined result in profit i.e (26, 71,982) is greater. Therefore the individual segment results as a percentage of Rs 26, 71,982 needs to be examined.
Here segment (B&C) is reportable segment as the segment asset is more than 10% of total segment assets. Thus Segment B&C is reportable segment.
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The segments whose total revenue from external sales and inter-segment sales
is 10% or more of total revenue of all segments external and internal should be
identified as reportable segments. Therefore segment B&C is reportable segment.
Here segment B&C is reportable segment as the segment result is more than
the threshold limit of 10%. Segment B&C is reportable segment as the segment assets is more than 10% of total segment assets.
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The segments whose total revenue from external sales and inter-segment sales is 10% or more of total revenue of all segments external and internal should be identified as reportable segments. Therefore segment B&C is reportable segment. It is to be first identified whether the combined result of all segments in profit or combined results of all segments in loss is greater in absolute amount. From the table it is evident that combined result in profit (i.e. 50,63,704) is greater. Therefore the individual segment result as a percentage of Rs. 5,70,63,704 needs to be examined. Here segment B&C is reportable segment as the segment result is more than the threshold limit of 10%. Segment B&C and unallocated are reportable segment as the segment assets is more than 10% of total segment assets. Thus B&C and Unallocated is a reportable segment.
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The segments whose total revenue from external sales and inter-segment sales
is 10% or more of total revenue of all segments external and internal should be
identified as reportable segments. Therefore segment B&C is reportable segment.
It is to be first identified whether the combined result of all segments in profit or combined results of all segments in loss is greater in absolute amount. From the table it is evident that combined result in profit (i.e. 44,87,481) is greater. Therefore the individual segment result as a percentage of Rs. 44,87,481 needs to be examined.
Here segment B&C is reportable segment as the segment result is more than the threshold limit of 10%. Segment B&C and unallocated are reportable segment as the segment assets is more than 10% of total segment assets. Thus B&C and Unallocated are a reportable segment
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The segments whose total revenue from external sales and inter-segment sales
is 10% or more of total revenue of all segments external and internal should be
identified as reportable segments. Therefore segment B&C is reportable segment.
It is to be first identified whether the combined result of all segments in profit or combined results of all segments in loss is greater in absolute amount. From the table it is evident that combined result in profit (i.e. 62,71,617) is greater. Therefore the individual segment result as a percentage of Rs.62,71,617 needs to be examined.
Here segment B&C is reportable segment as the segment result is more than the threshold limit of 10%. Segment B&C and unallocated are reportable segment as the segment assets is more than 10% of total segment assets. Thus B&C and Unallocated is a reportable segment
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The segments whose total revenue from external sales and inter-segment sales
is 10% or more of total revenue of all segments external and internal should be
identified as reportable segments. Therefore segment B&C is reportable segment.
It is to be first identified whether the combined result of all segments in profit or combined results of all segments in loss is greater in absolute amount. From the table it is evident that combined result in profit (i.e. 85,25,301) is greater. Therefore the individual segment result as a percentage of Rs.85,25,301 needs to be examined.
Here segment B&C is reportable segment as the segment result is more than the threshold limit of 10%. Segment B&C is reportable segment as the segment assets is more than 10% of total segment assets. Thus B&C is a reportable segment.
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IFRS
Indian GAAP
Applicability
This standard is applicable to separate This standard is applicable to all level I or individual financial statements of an entities. entity whose debt or equity instruments are listed or proposed to be listed, and Consolidated Financial Statements of a group with a parent whose debt or equity instruments are listed or proposed to be listed.
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IFRS IFRS imposes a Management Approach to the identification of operating segments which is to be based on internal reports that are regularly reviewed by the entitys Chief Operating Decision Maker (CODM) in order to allocate resources to the segment and assess its performance.
Indian GAAP Determination of Segments AS 17 requires an enterprise to identify two sets of segments (business and geographical), using a risks and rewards approach, with the enterprises system of internal financial reporting to key management personnel serving only as the starting point for the identification of such segments.
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IFRS
Segment profit or loss is reported on the same measurement basis as that used by the chief operating decision maker. There is no definition of segment revenue, segment expense, segment result, and segment asset or segment liability
Indian GAAP
Measurements Segment information is prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the enterprise as a whole. Segment revenue, segment expense, segment result, segment asset and segment liability have been defined
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IFRS
IFRS does not define segments as either business or geographical segment and does not require measurement of segment amount based on entitys accounting policies, an entity must disclose how it determined its reportable operating segments and the basis on which disclosed amount have been measured
Indian GAAP
Conformity with accounting policies AS 17 requires that segment information must be prepared in conformity with the accounting policies adopted for preparing and presenting the Financial Statements of the consolidated group or entity.
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IFRS IFRS allows for discrete reporting of a component of an entity that sells primarily or exclusively to other pertaining segments of an entity.
Indian GAAP Discrete reporting AS 17 requires only those segments which sell exclusively or primarily to external customers to be deemed reportable segments.
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Jon A. Booker. (2009). Accounting: Information for Decision Making. In J. A. Booker, Accounting: Information for Decision Making. California: Tata McGraw Hills.
Ministry of Corporate Affairs. (2011, July 26). Accounting Standards. Retrieved July/August 2011, from MCA:
http://mca.gov.in/Ministry/pdf/Ind_AS17.pdf
Zee Entertainment Enterprise Ltd., (ZEEL). (n.d.). Annual Report from 2005 to 2011. Mumbai: ZEEL.
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