Accounting Standard (AS) 17 Segment Reporting

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Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2011 Hi,

Our company has recently opened Branch office in Singapore.

Untill now Accounting Standard (AS) 17 Segment Reporting was not applicable since Companys operations consist
of providing Software Development and IT enabled services to company offices located at USA,UK,Japan i.e. within Group.

I just wanted know whether Accounting Standard (AS) 17 Segment Reporting is applicable due to Branch office in Singapore.

Saurabh Saxena

Saurabh Saxena (Expert)
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18 May 2011 Hi,

As the market conditions where branch office is located are different from market conditions prevailing in India and foreign branch is exposed to exchange risk also. Therefore, needs arises for business segment reporting

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2011 Hi,

Thanks for the reply.

Branch is started in the month of Feb-11.Tuenover of the branch is less than 10% of Total turnover.

Saurabh Saxena

Saurabh Saxena (Expert)
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18 May 2011 There are three critiria for this. First 10% turnover, second 10% assets and thirdly 10% of profit/loss. Despite of this management as per its own discretion can treat any segemnt as reportable