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AS 17 - Segment Reporting - Coggle Diagram
AS 17 - Segment Reporting
Introduction
Focus: Enhance understanding of enterprise performance, risk, and return through segment information in financial statements.
Objective
Improve performance understanding.
Assess risk and return better.
Inform judgments about the enterprise overall.
Advantages
Enhances financial statement usability for performance assessment, risk and return evaluation, and comprehensive enterprise judgments.
Applicability
For general-purpose and consolidated financial statements.
Full compliance required, not selective.
Disclosure Requirement
Not required for enterprises with only one business or geographical segment, as relevant information is already in financial statements.
Segment Identification
Based on enterprise's internal financial reporting system.
Consideration for both business and geographical segments.
Segment Accounting Policies
Reflects enterprise's overall accounting policies and specific segment reporting methodologies.
Segment Results
Calculated as segment revenue minus segment expenses.
Includes interest expenses related to specific segments under certain conditions.
Allocation Principles
Consistent allocation of revenue, expenses, assets, and liabilities to segments.
Allocation based on nature of items and segment activities.
Treatment of Intra-Enterprise Transactions
Determined before intra-enterprise balance eliminations during financial statement preparation.
Reporting Format Determination
Based on the predominant source of risk and return.
Either business or geographical segments as primary, with the other as secondary.
Identification of Reportable Segments
Based on segment revenue, result, and assets meeting specific thresholds.
Consideration for management discretion and continuous reporting of previously identified segments.
Special Situations
No single dominant factor or no identification factor leads to management discretion in segment reporting.
Principles for Reportable Segments
75% revenue principle for sufficient external revenue representation.
Continuity and comparative principle for consistent reporting across periods.
Management discretion allows reporting of segments not meeting threshold criteria.
Single Segment Principle
Segment reporting not required for enterprises with only one business or geographical segment, as necessary information is provided in balance sheet and P&L account.