Corporate Reporting

Topics: International Financial Reporting Standards, Financial statements, Balance sheet Pages: 17 (3125 words) Published: December 7, 2014

ASSIGNMENT SUBMISSION SHEET

Course Title:BSC (Hons) in Accounting and Finance
Module Title: CORPORATE REPORTING
Team Members:1. LEE KEE TAR, UB: 11034518
2. JULIANA BTE ABDUL RAHMAN, UB: 11034517
3. VITHIA SUBRAMANIAM, UB: 11034521
4. ANG MING LIANG, UB: 12038344

Title:SEGMENT DISCLOSURE ARE WIDELY REGARDED AS SOME OF THE MOST USEFUL DISCLOSURE IN FINANCIAL REPORTS BECAUSE OF THE EXTENT TO WHICH THEY DISAGGREGATE FINANCIAL IMFORMATION INTO MEANINGFUL AND OFTEN REVEALING GROUPS.DISCUSS

Word Count: 2554

Lecturer: MR LIM KAIM SOON

Batch number: BAFE1 1232A

SUBMISSION DATE: 24th NOVEMBER 2014

TABLE OF CONTENT

Executive Summary

1a
Discuss the objectives of segmental information in annual reports

1b
Discuss the requirements for the disclosure of segmental information in annual reports

2a (i)
Based on the extracts from the segment notes, how much & what segmental information is provided in the segment notes?

2a (ii)
Discuss whether the companies are in compliance With the relevant accounting standards?

2a (iii)
Discuss the similarities and differences between their disclosure practice

2b
What the segmental disclosures indicate about the relative performance of the segments within each of those companies?

2c
What factors could potentially help to explain the differences/similarities in the segmental disclosure practices of the selected companies?

2d
Comment on whether the information is useful and sufficient to allow shareholders to make informed investment decisions.

2e
Discuss the implications of your analysis and findings, such as policy implications.

Executive Summary
This report is to provide an overview of segmental disclosure in the financial statements of companies. The growth of large and diversified companies has presented difficulties for users of financial reports in the assessment of its performance and cashflow as well as the risks and hence segmental disclosure provide some certainty in meeting the information requirements of the investors. Many companies are not willing to disclose segment information as there could be insufficient information and lack of resources to provide adequate segmental information as it incurs high cost in preparing segmental information. Another consideration why companies are unwilling to disclose segments is that they may experience competitive disadvantages. Regulators have been pushing for companies to disclose segmental information as there is a lack of voluntary disclosures where senior management chooses discretion in segmental disclosures. This could result in potential misleading and distorted information. Segmental disclosure reporting has provided better information for analyst and researchers with forecasting on business performances. There is evidence that segment information accuracy on forecast is dependent on specific industries and the size of the companies as well. It also appears that geographical segmental disclosure have more useful data for market reaction and for the management to make decisions on operating matters.

1a) Discuss the objectives of segmental information in annual reports Segment reporting remains to be an important aspect of reporting of financial statement. It allows the users to make sound judgment of the opportunities and risks facing an entity by the disclosure of more disaggregated information than those provided in the primary financial statements. As the segmental information to be disclosed is more disaggregated, it allows the users of the financial statement to analyse the financial performance of the organization in the different areas or segments where they operate. Therefore, segmental reporting data increase the value relevance of the accounting information disclosed in the financial statements. 1b) Discuss the...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • News Reporting and Confidentiality Essay
  • Corporate Reporting: Course Notes Essay
  • Advanced Corporate Reporting Essay
  • Describe the Most Ideal Method a Health Reporter Can Use to Establish News Sources for Health Reporting Essay
  • Essay about Financial Performance Reporting
  • Evidence On The Benefits Of Segment Reporting Essay
  • International Financial Reporting Standards Essay
  • International Financial Reporting Standards and Leases Essay

Become a StudyMode Member

Sign Up - It's Free
2 Genuine Parker Medium Ball Point Ball Pen or Rollerball Refill BLUE or BLACK | Greg Kinnear | Bontel Little lover L2-1.54-0.3MP-800mAh (Dual Sim) Black -36% KSh 3,199 KSh 5,000 (5 Offers from KSh 3,199 ) (1) Buy now