Authors :
Ankita; Kripa Shankar Jaiswal
Volume/Issue :
Volume 8 - 2023, Issue 1 - January
Google Scholar :
https://bit.ly/3IIfn9N
Scribd :
https://bit.ly/3DNh1aA
DOI :
https://doi.org/10.5281/zenodo.7619969
Abstract :
Stakeholders are now more aware of the value
of a thorough analysis of company reports as a result of
globalization and fierce competition. Numerous
companies are also segmenting their business operations.
The data from different business segments is not divided
into categories in a consolidated financial statement.
Major accounting organizations like the Institute of
Chartered Accountants of India and the International
Accounting Standard Committee have developed
accounting standards that mandate the disclosure of such
segment-related accounting information.
The Statement of Financial Accounting Standards
(SFAS) 14 that the Financial Accounting Standard Board
(FASB) of the United States released in 1974 introduced
the idea of segment reporting. IAS 14 reporting financial
information by segment was then published in 1981 by the
International Accounting Standards Committee. To
enhance segment reporting, SFAS 14 and IAS 14 were
both updated. While IAS 14 underwent revision in 1998,
SFAS 14 underwent revision in 1997 with the publication
of SFAS 131 (Management Approach). By adopting
standards set forth by their respective national
institutions, several nations have now made segment
reporting necessary. Since April 1, 2001, listed and
unlisted companies in India have been required to report
financial data by segment under Accounting Standard 17.
The research study focuses on the conceptual
understanding of segment reporting, its usefulness and
implementation requirements, and various accounting
standards related to segment reporting, and evaluates
them in a contest of business performance.
Keywords :
Segment Reporting, Business, Stakeholders, Financial Statements, Accounting Institutions.
Stakeholders are now more aware of the value
of a thorough analysis of company reports as a result of
globalization and fierce competition. Numerous
companies are also segmenting their business operations.
The data from different business segments is not divided
into categories in a consolidated financial statement.
Major accounting organizations like the Institute of
Chartered Accountants of India and the International
Accounting Standard Committee have developed
accounting standards that mandate the disclosure of such
segment-related accounting information.
The Statement of Financial Accounting Standards
(SFAS) 14 that the Financial Accounting Standard Board
(FASB) of the United States released in 1974 introduced
the idea of segment reporting. IAS 14 reporting financial
information by segment was then published in 1981 by the
International Accounting Standards Committee. To
enhance segment reporting, SFAS 14 and IAS 14 were
both updated. While IAS 14 underwent revision in 1998,
SFAS 14 underwent revision in 1997 with the publication
of SFAS 131 (Management Approach). By adopting
standards set forth by their respective national
institutions, several nations have now made segment
reporting necessary. Since April 1, 2001, listed and
unlisted companies in India have been required to report
financial data by segment under Accounting Standard 17.
The research study focuses on the conceptual
understanding of segment reporting, its usefulness and
implementation requirements, and various accounting
standards related to segment reporting, and evaluates
them in a contest of business performance.
Keywords :
Segment Reporting, Business, Stakeholders, Financial Statements, Accounting Institutions.
