query on exposure draft 17 - operating segment

 In some entities, some managers are responsible for different product and service lines worldwide, whereas other managers are responsible for specific geographical areas. The chief operating decision maker regularly reviews the operating results of both sets of components, and financial information is available for both. In that

situation, the entity shall determine which set of components constitutes the

operating segments by reference to the core principle.

 

core principal -

An entity shall disclose information to enable users of its financial

statements to evaluate the nature and financial effects of the business

activities in which it engages and the economic environments in which it

operates.

now my question is i want a proper example which explain the above lines

i mean to say if georaphical n business segment have both required to report ...

than what is the best criteria to judge ...to report by which method ..or to which segment we give importance ...

 

please i want expert suggestion .....

Replies (3)

please frndz suggest me .....how i report ...

 

its very urgent ...

 

First you have to catogrise the business and geographical segment into primary and secondary segment for reporting purpose . This is based upon the dominant risk factor faced by the entity 

The best method to find out the reporting entity is limit method 

After findind out the reportable segment on the basis of limit method, u will report the segment as per AS-17

Example-

Let Business segmnet is ur primary segment and Goe segment is ur secondary segment 

then u report as follows:-

1) Primary segment

S. revenue

S.result

S.asset

S.liab

Capex

Dep*

N.cash exp*


2) Secondary segment

S.Revenue(location of customer)

S.assets(location of assets)

Capex(location of assets)


notes:-

1)*not required if u prepare cash flow

2) If u select Geo segment(loc.of custumer) as ur primary segment, then u disclose the 7 points for the same and in secondary disl. 

S.revenue(B.seg)

S.assets(loc. of assets)

Capex(loc. of assets)

3) If u select Geo. seg(location of assets) as ur primary seg then u discllose the 7 points for the same and in secondary disclosure 

S.revenue(B.seg.)

S.assets(location of cus.)

Capex(Location of cus)

my dear frnd ...

first off all exposure draft is issued as correspondence to IFRS.

 

as per exposure draft -17 .

 

there us only operating segment ..

 

but my query is on ...

 

how u will report ..

 

if both the segments have 50 - 50 percent chance to report ...

 

how u will give ur judgement to the board ..

or ur member ..

 

on wht basis u reported ..

 

my query is that ....

 

regards

Rahul khatter

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 20 October 2026
CA ARTICLE

AMKN & CO

Noida

CA Inter

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 17 October 2026
Articled Assistant

RRPM & Associates LLP

Chennai

CA Inter

View Details
Company
ARTICLESHIP 23 October 2026
Articled Trainee

J Y & CO

Hyderabad

CA Inter

View Details