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Geographical segment reporting

Riddhi Thakkar (Manager - Legal and Secretarial) (121 Points)

03 October 2016

My Company (Pvt. Ltd) has operations from India and Outside. However, revenue from India is mere 3-5% of the total revenue. Is it possible to avoid geographical segment reporting. If yes, please quote relevant provisions or case laws, if possible. Please help. Its urgent.

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CA Tanvi Sheth (Consultant) (232 Points)
Replied 03 October 2016

Hello,

As per AS-17, You need to report a business segment based on either of the three conditions: Revenue, Results and assets.

If 10% or more of total assets are related to your Indian segment then you need to report the Indian Geographical segment.

It seems that it is a company registered in India but most of the business is of overseas, then according to disclosure requirement, you may disclose domestic and international business, so accordingly it would be better if you disclose Indian segment of business.

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