ACC 312 Study Guide - Midterm Guide: Financial Statement
Document Summary
Segmental reporting provides a further dimension to the financial statements through analysis of turnover, operating profit and net assets, by business class and geographical segments. Most large companies are usually comprised of diverse businesses, rather than being engaged in a single type of business activity, that supply different products and services. The further analysis of segmental performance to determine more accurately the likely growth prospects for the business as a whole. Evaluation of the impact on the company of changes in conditions relating to particular activities improvements in internal management performance, because it may be monitored through disclosure of segmental information to shareholders. Evaluation of the acquisition and disposal performance of the company. Class of business is a part of the overall business, which can be identified as providing a separate product or service, or group of related products or services. A geographical segment may comprise an individual country or a group of countries in which the business operates.
