Journal articles: 'Segment Reporting'

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Dvořáková, Dana. "Segment Reporting." Český finanční a účetní časopis 2007, no. 1 (March 1, 2007): 6–10. http://dx.doi.org/10.18267/j.cfuc.205.

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Nicolò, Domenico, and Maria Gabriella Baldarelli. "Toward an Integrated Segment Reporting: Between Tradition and Innovation." International Journal of Advances in Management and Economics 8, no. 6 (October 30, 2019): 16–22. http://dx.doi.org/10.31270/ijame/v08/i06/2019/3.

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This paper aims to focus on the contribution of the approach by segments to planning and reporting social and environmental performance along with economic and financial dimensions. After the review of the literature about stakeholder’s theory and segment reporting, the paper analyse the logic underlying the technique of segmentation in the "space" and in the "time" for corporate reporting in theory and in practice. Keywords: Environmental reporting, Integrated reporting, Social reporting, Segment reporting, Social segment reporting, Sustainability reporting.

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Bens, Daniel A., Philip G. Berger, and Steven J. Monahan. "Discretionary Disclosure in Financial Reporting: An Examination Comparing Internal Firm Data to Externally Reported Segment Data." Accounting Review 86, no. 2 (March 1, 2011): 417–49. http://dx.doi.org/10.2308/accr.00000019.

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ABSTRACT: We use confidential, U.S. Census Bureau, plant-level data to investigate aggregation in external reporting. We compare firms’ plant-level data to their published segment reports by grouping a firm’s plants that share the same four-digit SIC code into a “pseudo-segment.” We then determine whether each pseudo-segment is disclosed as an external segment, or whether it is subsumed into a different business unit for external reporting purposes. We show that a pseudo-segment is more likely to be aggregated when the agency and proprietary costs of separately reporting the pseudo-segment are higher and when firm and pseudo-segment characteristics allow for more discretion in the application of segment reporting rules. For firms reporting multiple external segments, aggregation of pseudo-segments is driven by both agency and proprietary costs. For firms reporting a single external segment, we find no evidence of an agency cost motive for aggregation.

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Roy, Gayatri Guha, and Bhagaban Das. "Segment Reporting Practices in India: A Case Study of TCS." Emerging Economy Studies 5, no. 1 (April 7, 2019): 55–62. http://dx.doi.org/10.1177/2394901519825938.

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Segment reporting requires companies especially those which are multi-product and multi-location to disclose their segment-wise operations in their annual reports as well as in their quarterly reports. The users of financial statements have different utilities for the financial information. The users of accounting information are the stakeholders and they are mainly concerned with financial information of various segments of business. The concept of segment reporting in a formalized form is almost 32 years old. It was proposed in 1974 when the Financial Accounting Standard Board (FASB) of USA issued Statement of Financial Accounting Standards (SFAS) 14. After, this International Accounting Standards Committee issued IAS 14 reporting financial information by segment in 1981. Both SFAS 14 and IAS 14 were revised to make segment reporting more informative. SFAS 14 was revised by the FASB with the issue of SFAS 131 in 1997, whereas IAS 14 was revised in 1998. Now, several countries through the standards issued by their respective national institutions have made the segment reporting mandatory. AS 17 in India mandates listed and other companies to report their financial information by segments. The present case study highlights the segment reporting of Tata Consultancy Services (TCS). How the critical analysis of segment reporting is carried out and how it is useful for the external users? This study develops an empirical proxy for the quality of segment reporting from the data in company’s annual reports. Information about an entity’s geographical and business segments is relevant in assessing the risks and returns of a diversified or multinational entity for which such information is often difficult or impossible to determine from aggregated data.

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Alfonso, Elio, Dana Hollie, and Shaokun Carol Yu. "Managers Segment Financial Reporting Choice: An Analysis Of Firms Segment Reconciliations." Journal of Applied Business Research (JABR) 28, no. 6 (October 26, 2012): 1413. http://dx.doi.org/10.19030/jabr.v28i6.7352.

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Under SFAS No. 131, a company is required to provide a reconciliation of the total of the reportable segments profit or loss to the firms consolidated income. This paper investigates these segment disclosures and related determinants of managers segment financial reporting choices. We focus on managers decisions to report segment-to-firm level reconciliations (i.e., segment reconciliations (SERs)) differences between firm-level and aggregated segment-level earnings. On average, we find that SERs are significant when the differences are not equal to zero. Firms with higher agency costs and greater accruals are less likely to report segment reconciliations. However, firms that have a greater number of segments, larger firms, and firms with higher leverage, losses, and greater earnings volatility are more likely to report SER?0. Consistent with managers having some segment reporting discretion, our overall findings suggest a managers segment reporting choice is partly driven by agency costs. Interestingly, among firms with reported segment reconciliations, firms with higher agency costs are more likely to report positive SERs. Consequently, this study documents a relation between proxies for agency costs and managers decisions to report segment reconciliations. Policy implications and suggestions for future research are discussed in the paper.

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Pardede, Robert Pius, and Tri Ernawati. "Analisis Penerapan PSAK 5 (Revisi 2009) terhadap Pengungkapan Segmen Operasi pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia (BEI)." Jurnal Ilmiah Akuntansi Kesatuan 5, no. 2 (July 27, 2018): 157–63. http://dx.doi.org/10.37641/jiakes.v5i2.86.

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The International Accounting Standards Board (IASB) is committed to improve their standards’ quality, which is the global accounting standards that reflect information in financial statements as transparent and comparable for public purposes. The International Accounting Standards (IAS) and the International Financial Reporting Standards (IFRS) provide guidelines in creating and interpreting companies’ financial statements (Iatridis & Dalla, 2011). The purpose of this research was to assess the impact of the application of PSAK 5 (revised 2009). PSAK 5 (revised 2009) requires segment disclosure based on the internal reporting reviewed by the operation decision maker. PSAK 5 (revised 2000) requires companies to disclose segments information based on the format of the primary and secondary segments as identified per products / services that generate the same level of risk and return. The six analytical frameworks developed for this research, namely: (1) analysis of the presentation of segment information based on PSAK 5 (revised 2000) versus PSAK 5 (revised 2009), (2) analysis of the determination and identification of operational decision-making, (3) the analysis of the definition and identification operating segments between industry sectors, (4) analysis of segment aggregation, (5) analysis of determination of the reportable segments, and (6) analysis of reported segment disclosures. In conclusion, generally, the disclosure of segment information based on PSAK 5 (revised 2009) by using the management approach yields a more complete segment report, by conveying more relevant segmental information from the standpoint of management's internal performance than the previous standard, which was PSAK 5 (revised 2000). This research found significant changes related to an increase in the disclosure of segment disclosure in business segments, segment aggregation, and basic information on company's segmental performance measurement in Indonesia.

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Kobbi-Fakhfakh, Sameh, Ridha Mohamed Shabou, and Benoit Pigé. "Determinants of segment reporting quality: evidence from EU." Journal of Financial Reporting and Accounting 16, no. 1 (March 12, 2018): 84–107. http://dx.doi.org/10.1108/jfra-10-2016-0077.

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Purpose This study aims to provide some empirical evidence on the determinants of segment reporting quality, and to propose a new measurement tool of segment reporting quality – segment reporting quality index (SRQI). Design/methodology/approach On the basis of hand-collected segment data for a sample of 171 European Union publicly listed companies from the 2006-2012 annual reports, the study uses multiple regression model to investigate the determinants of segment reporting quality. A new measurement of segment reporting quality is constructed. It aggregates different segment reporting practices indicators, including the number of segments, the extent of information disclosed and the geographic fineness. Additional estimations are conducted to test the robustness of the results. Findings The results suggest that there is a substantial variation in the quality of segment reporting among the sampled European Union firms. Large corporations, audited by Big 4 auditors and more internationally oriented, tend to provide a higher quality of segment reporting. In contrast, debt leverage negatively impacts the quality of segment reporting. However, the quality is not significantly related to profitability. The findings are fairly robust to a number of econometric models that control, for year fixed effects and pre- and post-International Financial Reporting Standards 8 adoption. Overall, the findings are generally consistent with the predictions of agency theory. Research limitations/implications The results imply that considerable managerial discretion exists. Despite the IFRS commitment to enhance comparability of the financial statements, segment information remains very disparate. It enables investors to get a better understanding of a firm’s activities, but it does not allow for a better assessment of a firm as compared to the other firms of the same sector. As compared with other IFRS standards, the segment reporting has more relation with corporate governance structure and specific institutions that regulate a sector or a country. Furthermore, the results show that firm characteristics are associated with the study’s aggregated measure of segment reporting quality (SRQI) consistently with theoretical and empirical evidence. SRQI can, thus, be used by researchers for replication or to study new questions on firms’ segment disclosure behavior on a much wider set of firms in the economy. While this research makes several noteworthy contributions, the authors acknowledge that SRQI considers only multisegments firms that disaggregate their primary/operating segments by line-of-business and disclose secondary/entity-wide level geographic information. Originality/value This study offers new evidence on the determinants of segment reporting quality following IFRS adoption, in the European Union context. This study contributes to the existing literature by proposing an aggregated measure of segment reporting quality (SRQI). Unlike previous measures, which were usually limited to researcher self-constructed indexes, SRQI captures different facets of segment information in terms of disaggregation and disclosure extent.

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Young, Chaur-Shiuh, Chia-Hui Chen, Fei-Liang Chien, and Tzu-Yi Yu. "Managerial empire building and segment reporting quality: The role of auditor industry specialization." Corporate Ownership and Control 12, no. 1 (2014): 518–30. http://dx.doi.org/10.22495/cocv12i1c5p5.

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This study aims to explore whether empire building firms have lower segment reporting quality under the new accounting standard-IFRS No. 8, Operating Segments. IFRS No. 8 requires firms to report segment information on basis of the management approach, which implying the opportunity of managerial manipulation. We use the sample of 8 countries that have followed IFRS 8 over the period 2009-2011, and find that when managers with high incentives to build managerial empire will conceal segment reporting information on purpose which leads to lower segment reporting quality. Furthermore, our results show that external auditors with industrial experience attenuate the agency problem of managerial empire building and consequently increase segment reporting quality.

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Herrmann, Don, and Wayne B. Thomas. "An Analysis of Segment Disclosures under SFAS No. 131 and SFAS No. 14." Accounting Horizons 14, no. 3 (September 1, 2000): 287–302. http://dx.doi.org/10.2308/acch.2000.14.3.287.

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The purpose of this paper is to compare the segment reporting disclosures under SFAS No. 131 with those reported the previous year under SFAS No. 14. Under SFAS No. 131, firms are required to report segments consistent with the way in which management organizes the business internally. In addition, the accounting items disclosed for each segment are defined consistent with internal segment information used to assess segment performance. For many companies, this represents a significant change from the approach used to report segments under SFAS No. 14. Under SFAS No. 14, firms were required to disclose segment information by both line-of-business and geographic area with no specific link to the internal organization of the company or the measurements that were used for internal decision making. As a result, many complained that the resulting disclosures were highly aggregated and of limited use for decision-making purposes. We find that the change in segment reporting requirements under SFAS No. 131 has made a relatively significant impact on the disclosure of segment information. Over two-thirds of the sample firms have redefined their primary operating segments upon adopting SFAS No. 131. There has also been an increase in the number of firms providing segment disclosures and companies are disclosing more items for each operating segment. For enterprise-wide disclosures, the proportion of country-level geographic segment disclosures has increased, while the proportion of broader geographic area segment disclosures has decreased. However, the number of firms reporting earnings by geographic area has declined greatly as this item is no longer required to be disclosed for firms reporting on a basis other than geographic area.

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Fatmawati, Dian Surya Ayu, Bambang Subroto, and Aulia Fuad Rahman. "PENGUNGKAPAN JUMLAH SEGMEN PASCA KONVERGENSI IFRS." Jurnal Reviu Akuntansi dan Keuangan 8, no. 2 (October 22, 2018): 159. http://dx.doi.org/10.22219/jrak.v8i2.35.

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The purpose of this study is to examine what extent of disclosure segmental reporting after IFRS convergence in Indonesia. The great value of this study is highlighted by the effort to empirically investigate the beginning impact of segmental disclosure standard to segment number. Descriptive analysis was used to describe changes of Line Of Business (LOB) segment, geographical segment, level of specificity number. The study consist of 32 Multinational company that listing in Indonesian Stock Exchange (ISE) at 2012-2017. Thus result show that number and types of segments reported decrease 4% for LOB and 2% for geographic segment and using more disaggregated at geographic level. Those findings about changing can help to lead an insight of segmental disclosure implementation in the future.

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Florou, Annita, Serena Morricone, and Peter F. Pope. "Proactive Financial Reporting Enforcement: Audit Fees and Financial Reporting Quality Effects." Accounting Review 95, no. 2 (July 1, 2019): 167–97. http://dx.doi.org/10.2308/accr-52497.

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ABSTRACT We examine the costs and benefits of proactive financial reporting enforcement by the U.K. Financial Reporting Review Panel. Enforcement scrutiny is selective and varies by sector and over time, yet can be anticipated by auditors and companies. We find evidence that increased enforcement intensity leads to temporary increases in audit fees and more conservative accruals. However, cross-sectional analysis across market segments reveals that audit fees increase primarily in the less-regulated AIM segment, and especially those AIM companies with a higher likelihood of financial distress and less stringent governance. On the contrary, less reliable operating asset-related accruals are more conservative in the Main segment and, in particular, those Main companies with stronger incentives for higher financial reporting quality. Overall, our study indicates that financial reporting enforcement generates costs and benefits, but not always for the same companies. JEL Classifications: K42; M41; M42; M48. Data Availability: Data are available from the public sources cited in the text.

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Hollie, Dana. "A PERSPECTIVE ON SEGMENT REPORTING CHOICES AND SEGMENT RECONCILIATIONS." Applied Finance and Accounting 1, no. 2 (June 17, 2015): 88. http://dx.doi.org/10.11114/afa.v1i2.816.

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In 2014, segment reporting gained third place in SEC comment letters. This article reviews the history of the segment reporting including the segment reporting choices and segment reconciliations, the current concerns as the level of detail in segment disclosures varies widely across organizations, the value relevance of segment reconciliations and its market consequences, and the importance of segment reporting to management. The following are highlights of the manuscript: The third-most-common area discussed in SEC comment letters: segment reporting.The application of SFAS131: the whole may not equal the sum of its parts. The level of detail in segment disclosures varies widely across organizations.Segment reconciliation adds value to consolidated earnings.Segment reconciliation can have significant market consequences.Additional guidance on segment reporting may be beneficial and necessary in the future.

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Heo, Kyongsun, and Seoyoung Doo. "Segment Reporting Level And Analyst Forecast Accuracy." Journal of Applied Business Research (JABR) 34, no. 3 (May 7, 2018): 471–86. http://dx.doi.org/10.19030/jabr.v34i3.10170.

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In a setting where the primary financial statements have been converted from individual financial statements to consolidated financial statements in Korea, we examine the effect of segment information disclosed by the firm on analysts’ consolidated-base earnings forecast accuracy. Since Korean firms have prepared the primary financial statements on a non-consolidated basis in the pre-IFRS regime, the adoption of International Financial Reporting Standards (IFRS) leads to a great deal of difficulties and complexities in making accurate consolidated forecasts for users of financial statements, even for financial analysts who are sophisticated users of financial statements. In this situation, we conjecture that the amount of details and types of information in segment disclosure will influence analysts’ forecast accuracy. Consistent with the prediction, we find that financial analysts are able to make more accurate earnings projections when firms provide more disaggregated accounting figures by each segment. Moreover, we find that analysts can make forecasts more accurately when firms disclose more persistent earnings component (i.e., segment operating income). Furthermore, we find that the effect of the segment disclosure levels on analysts’ forecast accuracy is more pronounced for firms with multi-segments. Our results indicate that disaggregated segment information is a useful source for financial analysts to have better understanding about complete picture of firms’ consolidated earnings and improve their forecasting performance.

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Chazelle, Bernard. "Reporting and counting segment intersections." Journal of Computer and System Sciences 32, no. 2 (April 1986): 156–82. http://dx.doi.org/10.1016/0022-0000(86)90025-5.

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Birt, Jacqueline, and Greg Shailer. "Forecasting confidence under segment reporting." Accounting Research Journal 24, no. 3 (November 22, 2011): 245–67. http://dx.doi.org/10.1108/10309611111186993.

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Kelly, Gary J. "Unregulated Segment Reporting: Australian Evidence." British Accounting Review 26, no. 3 (September 1994): 217–34. http://dx.doi.org/10.1006/bare.1994.1015.

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Street, Donna L., Nancy B. Nichols, and Sidney J. Gray. "Segment Disclosures under SFAS No. 131: Has Business Segment Reporting Improved?" Accounting Horizons 14, no. 3 (September 1, 2000): 259–85. http://dx.doi.org/10.2308/acch.2000.14.3.259.

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In response to user concerns regarding segment reporting, the FASB issued SFAS No. 131, Reporting Disaggregated Information about a Business Enterprise, in 1997. SFAS No. 131 became effective for fiscal years beginning on or after January 1, 1998. This research examines the segment disclosures of U.S. Global 1000 companies for both 1997 and 1998 to ascertain the impact and effectiveness of SFAS No. 131 in practice. Specifically, this research considers whether the new requirements have resulted in (1) a greater number of line-of-business (LOB) segments for some enterprises, particularly those who claimed to operate in one LOB under SFAS No. 14, (2) enterprises reporting more items of information about each segment, and (3) improved consistency of segment information with other parts of the annual report. The research also addresses whether restructuring by some firms might limit the provision of additional segment information under SFAS No. 131. The findings indicate significant changes from reporting under SFAS No. 14 including increased consistency with information in the MD&A and other annual report disclosures. However, the practices of a significant minority of companies continue to give some cause for concern.

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Hurtt, David, Bradley E. Lail, and Jason MacGregor. "The Relationship Between Segment-Level Manipulations And Audit Fees." Journal of Applied Business Research (JABR) 29, no. 4 (June 28, 2013): 1243. http://dx.doi.org/10.19030/jabr.v29i4.7930.

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We examine the auditorssensitivity to manipulative financial reporting by investigating the relationbetween audit fees and segment-level manipulations. Segment reporting provides an interestingsetting to examine auditor risk assessments because of the discretion affordedto management under existing regulations. Segment manipulations, a form of classificationsmoothing, are not in violation of accounting standards; nevertheless, thesemanipulations violate the spirit of faithful representation by distorting theperformance of a subset of the reporting unit at the expense of (or to thebenefit) of another subset. Because disaggregatedinformation is used by analysts and investors in bottom-upforecasting, these distortions can influence firm value even though they do notaffect bottom-line net income. Ourmeasure of classification smoothing measurescost shifting between core operating segments and non-core segments to proxyfor segment manipulation. We find thataudit fees, a proxy for the auditors risk assessment, have a positiveassociation with segment-level manipulations. Subsequent analyses suggest that higher auditfees are also due to the additional effort exerted in the presence of segment-levelmanipulations. Further, auditors appearjustified in charging higher fees to clients that engage in segmentmanipulations as we document evidence of a positive association betweenrestatements and segment-level manipulations. Collectively, these results suggest thatauditors are aware of the risk associated with companies that engage in segment-levelmanipulations and auditors respond appropriately by charging higher fees anddoing additional work.

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Franzen, Nina, and Barbara E. Weißenberger. "The adoption of IFRS 8 – no headway made? Evidence from segment reporting practices in Germany." Journal of Applied Accounting Research 16, no. 1 (May 11, 2015): 88–113. http://dx.doi.org/10.1108/jaar-05-2013-0037.

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Purpose – The purpose of this paper is to assess the changes in segment reporting practices of German listed firms under the new segment reporting standard IFRS 8. Design/methodology/approach – The authors compare hand-collected segment disclosures of German firms in the first IFRS 8 year with those reported in the last IAS 14R year. Findings – The authors do not find substantial changes in the segment disclosures of German firms under IFRS 8. While the number of reportable segments slightly increased, the amount of information disclosed for each reportable segment decreased. The same applies to geographic areas reported as secondary segments under IAS 14R compared to entity-wide disclosures under IFRS 8. Furthermore, even though more country-specific information was provided, many firms still disclosed only broad geographic areas. Research limitations/implications – Future research should extend the analysis to consider more than one year of data following IFRS 8’s adoption and to examine the impact of the standard on smaller firms. Moreover, investigating economic benefits for investors and other financial statement users following IFRS 8’s adoption could be an avenue for future research. Practical implications – The findings indicate that the International Accounting Standards Board’s (IASB) expectations regarding changes in segment reporting practices under IFRS 8 have only partially been met. The results also reveal some cases of segment reporting practice where compliance is at least questionable. Both findings are of interest to standard-setters and regulators. Originality/value – The paper provides new insights into the effects of IFRS 8’s adoption in Germany and thus contributes to the post-implementation review of IFRS 8 carried out by the IASB in 2012/2013. The study sheds light on the consequences of applying the “management approach” to segment reporting, thereby contributing to the theoretical discussion on the adequacy of the different concepts for disclosing segment information.

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Birt, Jacqueline, Mahesh Joshi, and Michael Kend. "Segment reporting in a developing economy: the Indian banking sector." Asian Review of Accounting 25, no. 1 (February 6, 2017): 127–47. http://dx.doi.org/10.1108/ara-06-2015-0064.

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Purpose The purpose of this paper is to investigate the value relevance of segment information for both public and private sector banks in India. In doing so, this paper examines a rapidly developing economy and perhaps its most critical sector during this period of strong economic growth. Design/methodology/approach In this study uses the simplified Ohlson model, for a sample of 136 private sector and public sector banks for the period 2007-2010 in India. Findings The paper finds that public sector banks have higher share prices, higher earnings and more equity compared with private sector banks. Segment earnings data is highly value relevant for both sectors; however, segment equity data is only marginally value relevant for Indian banks. The number of segments is also value relevant and associated with higher share prices. Originality/value The results of this study contribute additional evidence to the literature on segment reporting by studying the effect of adoption of segment reporting in an emerging market. Findings from the paper are particularly relevant as India is currently in the process of changing its segment reporting requirements and moving to an IFRS-based segment standard.

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Zimnicki, Tomasz. "RESPONSIBILITY ACCOUNTING INSPIRATION FOR SEGMENT REPORTING." Copernican Journal of Finance & Accounting 5, no. 2 (March 9, 2017): 219. http://dx.doi.org/10.12775/cjfa.2016.024.

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Sannella, Alexander J. "Segment Reporting: The Cost Allocation Issue." Journal of Accounting, Auditing & Finance 6, no. 1 (January 1991): 75–102. http://dx.doi.org/10.1177/0148558x9100600107.

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Chan, I. W., and D. K. Friesen. "Parallel algorithm for segment visibility reporting." Parallel Computing 19, no. 9 (September 1993): 973–78. http://dx.doi.org/10.1016/0167-8191(93)90090-8.

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Rüb, Christine. "Line-segment intersection reporting in parallel." Algorithmica 8, no. 1-6 (December 1992): 119–44. http://dx.doi.org/10.1007/bf01758839.

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Chen, Peter F., and Guochang Zhang. "Segment Profitability, Misvaluation, and Corporate Divestment." Accounting Review 82, no. 1 (January 1, 2007): 1–26. http://dx.doi.org/10.2308/accr.2007.82.1.1.

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This paper develops a theoretical model to explain corporate divestment in the context of accounting-based valuation and provides empirical evidence to support the model's predictions. Building on Zhang's (2000) real-options-based equity value model, we develop a model to explain why firms with multiple business segments may have incentives in financial reporting to shift earnings from one segment to another to influence market valuation. Cross-segment earnings shifting, however, causes information asymmetry about segmental performance, which leads to market misvaluation. Divestment arises as a voluntary commitment by (some) firms to not engage in segmental earnings manipulation, with the aim of restoring valuation accuracy. Our theoretical analysis yields a number of testable implications. Consistent with our model's predictions, we find empirically that (1) divestment is preceded by an increased divergence in profitability between the divested and continuing segments of the divesting firm, (2) there are positive abnormal stock returns surrounding divestment announcements that are not dependent on increased expectations about future operating performance, (3) the magnitude of market revaluation increases with the profitability divergence between the divested and continuing segments, and (4) market revaluation is greater for more complex firms (in terms of having a larger number of segments and greater uncertainty facing investors).

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Amado, Pedro, Fábio Albuquerque, and Nuno Rodrigues. "Los factores explicativos de la divulgación por segmentos en entidades no financieras cotizadas en los mercados europeos." Contaduría y Administración 63, no. 2 (April 10, 2018): 36. http://dx.doi.org/10.22201/fca.24488410e.2018.1629.

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Segment reporting (external) is a relevant tool for investors and other stakeholders, as the information is presented in a divisional way, enabling more accurate analysis to be made for decision making. However, reporting entities do not always assure the inherent potential of segment reporting. This research aims to identify the explanatory factors that may influence the level of segment disclosure. For this purpose, we have investigated the segment disclosures presented in accordance with the International Financial Reporting Standards (IFRS) 8 of the International Accounting Standards Board (IASB), as adopted by the European Union, based on consolidated reports and accounts (for the year 2015) of a sample of 91 entities from the Portuguese Stock Index (PSI-20), Cotation Assistée en Continu (CAC-40), Deutscher Aktienindex (DAX-30) and OMX Nordic 40 (OMX-N40). The findings indicate that size is directly related to both the number of operating segments disclosed and the level of disclosure required for each segment. Further, the latter seems to be also influenced by the existence of barriers to entry (directly) and the degree of internationalisation (inversely).

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Samuel, Hope Udoma, Dorathy Christopher Akpan, and Sunday Asukwo Okpo. "Segment Reporting and Cost of Capital of Banks with International Authorization in Nigeria." European Journal of Business and Innovation Research 10, no. 8 (August 15, 2022): 12–23. http://dx.doi.org/10.37745/ejbir.2013/vol10n81223.

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This study investigated the effect of segment reporting on cost of capital of selected deposit money banks in Nigeria. The dependent variable of this study was cost of capital which was proxied by cost of debt, while segment reporting being the independent variable was proxied by business segment information, geographical segment information and external customer information. The research design adopted for the study was ex post facto, secondary data was employed, three hypotheses were also tested, and purposive sampling technique was employed. The data for the study was analyzed using ordinary least square technique and the statistical tool used was STATA 16. From the outcome of the analysis, it was found out that business segment information and geographical segment information has significant effect on cost of debt capital of selected banks in Nigeria. Thus it was concluded that reporting separate financial information about reportable segments have the likelihood to reduce the banks cost of debt. Based on the outcome of this study, it was recommended that banks should in addition to the disclosure requirement of IFRS 8 make other voluntary and non-financial information as this will completely eliminate information asymmetry and in both the short and long run reduce their cost of debt.

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Andor, Pajrok. "Financial Reporting In The Lodging Industry From The Segment Reporting Aspect." Annales Universitatis Apulensis Series Oeconomica 1, no. 10 (June 30, 2008): 158–63. http://dx.doi.org/10.29302/oeconomica.2008.10.1.13.

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Chan, Timothy M. "Reporting curve segment intersections using restricted predicates." Computational Geometry 16, no. 4 (August 2000): 245–56. http://dx.doi.org/10.1016/s0925-7721(00)00012-2.

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Aleksanyan, Mark, and Jo Danbolt. "Segment Reporting: Is IFRS 8 Really Better?" Accounting in Europe 12, no. 1 (January 2, 2015): 37–60. http://dx.doi.org/10.1080/17449480.2015.1027239.

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CORTÉS, CARMEN, DELIA GARIJO, MARÍA ÁNGELES GARRIDO, CLARA I. GRIMA, ALBERTO MÁRQUEZ, AUXILIADORA MORENO-GONZÁLEZ, JESÚS VALENZUELA, and MARÍA TRINIDAD VILLAR. "REPORTING BICHROMATIC SEGMENT INTERSECTIONS FROM POINT SETS." International Journal of Computational Geometry & Applications 22, no. 05 (October 2012): 421–37. http://dx.doi.org/10.1142/s0218195912500100.

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In this paper, we introduce a natural variation of the problem of computing all bichromatic intersections between two sets of segments. Given two sets R and B of n points in the plane defining two sets of segments, say red and blue, we present an O(n2) time and space algorithm for solving the problem of reporting the set of segments of each color intersected by segments of the other color. We also prove that this problem is 3-Sum hard and provide some illustrative examples of several point configurations.

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Palazzi, L., and J. Snoeyink. "Counting and Reporting Red/Blue Segment Intersections." CVGIP: Graphical Models and Image Processing 56, no. 4 (July 1994): 304–10. http://dx.doi.org/10.1006/cgip.1994.1027.

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Alfaraih, Mishari M., and Faisal S. Alanezi. "What Explains Variation In Segment Reporting? Evidence From Kuwait." International Business & Economics Research Journal (IBER) 10, no. 7 (June 22, 2011): 31. http://dx.doi.org/10.19030/iber.v10i7.4665.

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The purpose of this study is to evaluate both the segment disclosure practice of firms listed on the Kuwait Stock Exchange (KSE) and the factors that influence their level of segment disclosures. Consistent with prior disclosure research, the level of segment disclosure is examined using a disclosure index based on the mandatory requirements of International Accounting Standard (IAS) 14 (Segment Reporting). The results show that the average level of segment disclosure in a sample of 123 KSE-listed firms in 2008 was 56%%, ranging from 18% to 94%. Users of KSE-listed firms financial statements might reasonably expect greater segment disclosures from larger, older, highly leveraged, and profitable KSE-listed firms, as well as from firms audited by a Big-4 audit firm. The findings provide feedback to the regulatory and enforcement bodies in Kuwait on current segment disclosure practice among KSE-listed companies and the factors that influence the level of segment disclosures. The noticeable variation in the level of segment disclosure among listed firms suggests a need for further monitoring of the enforcement of required segment disclosure.

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Voronova, E. "Segment Reporting As One of the Areas of Convergence of Financial and Management Accounting." Auditor 6, no. 1 (February 4, 2020): 41–46. http://dx.doi.org/10.12737/1998-0701-2020-41-46.

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Th e article is devoted to segment reporting as one of the areas of convergence of fi nancial and management accounting. It is noted that the consolidated fi nancial statements containing aggregated information are limited for making a number of economic decisions. Th e main normative documents regulating the disclosure and presentation of information by segments are considered. Attention is paid to the benefi ts and complexities associated with segment disclosures in fi nancial statements.

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Garza-Gomez, Xavier, Xiaobo Dong, and Ziyun Yang. "Unusual patterns in reported segment earnings of US firms." Journal of Applied Accounting Research 16, no. 2 (September 14, 2015): 287–304. http://dx.doi.org/10.1108/jaar-04-2013-0031.

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Purpose – The purpose of this paper is to extend prior findings on firms’ rounding up net income numbers to meet cognitive reference points and to examine whether segment-level earnings exhibit similar unusual patterns. Design/methodology/approach – This study is an archival research based on a sample of US public firms that report segment data between 1998 and 2011. The authors use Benford’s law to establish benchmarks for expected frequency of each number on the second digit of segment earnings and test whether the actual distributions deviate from expectations. Findings – The authors find more zeros and fewer nines than expected by chance in the second-from-the-left most digit for segment earnings numbers of US public firms, suggesting that segments round up earnings to meet cognitive reference points. The results complement the existing studies by showing that the rounding up of earnings not only exists at the firm level but also at the segment level, probably because subdivision managers have motivation to exceed certain reference points when reporting earnings. Research limitations/implications – As the authors cannot observe the contracts received by divisional managers, the authors rely on measures related to operating diversity to capture internal agency costs. Practical implications – The findings suggest internal and external auditors should pay close attention to segments that are suspected of earnings management, i.e. segments that report zeros on the second digit of revenues or earnings. Increased auditor attention is especially necessary for profitable segments operating in highly diversified multi-segment firms. Originality/value – The authors find that unusual patterns in segment reporting are more prominent in firms that operate in multiple and dissimilar segments, suggesting that higher internal agency conflict might lead to the rounding up of earnings.

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Tran, Hoang Viet. "FACTORS AFFECTING SEGMENT REPORTING OF LISTED COMPANIES: EVIDENCE FROM LISTED COMPANIES ON HOSE." Science and Technology Development Journal 18, no. 2 (June 30, 2015): 30–39. http://dx.doi.org/10.32508/stdj.v18i2.1116.

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The information disclosure and transparency in order to reduce the risk for investors is an urgent problem, in which segment reporting plays an important role in providing necessary information. This study evaluated factors affecting segment reporting and offered suggestions for information transparency in segment reporting of listed companies. The results showed that variables of size, leverage, age and ownership are positively correlated with segment reporting. Therefore the authors suggested policies for companies to increase their provision of necessary information, contributing to the reduction of risk for investors

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Farías, Pablo, and Ricardo Rodríguez. "Segment disclosures under IFRS 8’s management approach: has segment reporting improved?" Spanish Journal of Finance and Accounting / Revista Española de Financiación y Contabilidad 44, no. 2 (December 6, 2014): 117–33. http://dx.doi.org/10.1080/02102412.2014.987445.

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Fakhriyyah, Dewi Diah, and Irma Hidayati. "Pengungkapan Kuantitatif dan Kualitatif Segmen Operasi Berdasarkan PSAK 5 Revisi 2009 (Penyesuaian 2015) di Indonesia." Organum: Jurnal Saintifik Manajemen dan Akuntansi 4, no. 2 (November 17, 2021): 175–91. http://dx.doi.org/10.35138/organum.v4i2.163.

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Reporting of operating segments has become an important concern, therefore there is a PSAK 5 regulation which is continuously updated based on IFRS 8 to improve operating segment reporting. This study aims to examine the application of operating segment disclosure and its determinants in public companies in Indonesia.This research method is quantitative method. The operating segment in the financial statements of the LQ 45 Index’s Company in 2016 is analyzed by scoring to the items required by PSAK 5 Revised 2009 (Amandement 2015). The results showed that the majority cozmpany's compliance level of quantitative information is medium level of compliance,. Quantitative disclosure shows the most reported items are profit loss and total assets, meanwhile the least reported item is other non current assets and main customer information . Meanwhile, the most reported item of qualitative disclosure is the main products and services which generate revenues for the operating segments. This study shows that companies disclose more quantitative information than qualitative. In addition, the good corporate governance mechanism that determines the extent of disclosure of operating segments is institutional ownership and the board of directors. This research has implications for operating segment regulators to do better and contribute to the agency theory and signaling theory.

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Obradović, Vladimir, and Nemanja Karapavlović. "External Segment Reporting in the Republic of Serbia." Economic Themes 54, no. 1 (March 1, 2016): 155–76. http://dx.doi.org/10.1515/ethemes-2016-0008.

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AbstractThe purpose of the research in this paper is to examine the regulation and practices of external segment reporting in the Republic of Serbia. The importance of research stems from a great potential usefulness of segment information for investors and creditors. The analysis of regulation suggests that the Republic of Serbia has high-quality and internationally recognized basis of external segment reporting – IFRS 8. However, there is a room for improvement of IFRS 8. The analysis of practices, conducted on a sample of 500 companies, shows that companies in the Republic of Serbia, in general, do not attach great importance to the disclosure of segment information in financial statements. The practices are quite miscellaneous, which is a consequence of the flexibility of IFRS 8, but also an incomplete compliance with IFRS 8. By applying statistical techniques we have examined whether the practices of external segment reporting are related to characteristics of companies, which makes the originality of the paper. We have found that financial institutions disclose more extensive quantitative segment information in relation to other companies in the Republic of Serbia, and that companies with higher assets disclose more extensive segment information. The research indicates that there is a significant room for improving the practices of external segment reporting in the Republic of Serbia. The research results may be useful for regulators of financial reporting and preparers and auditors of financial statements.

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Parasii-Verhunenko, Iryna, Nataliia Hryshchenko, Tetiana Kostiuk, Lydiia Fedoryshyna, and Oleksandr Hridin. "Segmentary analysis of the efficiency of state enterprises." Independent Journal of Management & Production 13, no. 3 (May 1, 2022): s058—s075. http://dx.doi.org/10.14807/ijmp.v13i3.1899.

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The purpose of the article is to substantiate the main stages and directions of analysis of the activities of state-owned enterprises by operational and geographical segments, taking into account the goals and objectives of strategic management. The information base of the empirical study was the data of the official website of JSC “Ukrzaliznytsia” for 2020. The methodological and methodological basis of the study is the National Accounting Regulation (Standard) 29 “Financial reporting by segments” and International Financial Reporting Standards (IFRS) 8 “Operating segments”. The following methodical methods were used in the course of the research, namely: methods as comparison, modelling, time series, structural and dynamic, graphic and coefficient analysis. Based on the proposed methodology, the efficiency of JSC “Ukrzaliznytsia” is analysed and the problematic operating segments of its activities are identified, which reduce the overall financial results of the company. The results of the study are the improvement and systematization of analytical indicators in terms of individual stages and areas of strategic analysis of the effectiveness of state enterprises through the differentiation of performance evaluation of their operating business segments. For this purpose the main stages and directions of the analysis on the following analytical blocks are offered: the analysis of external environment of functioning of a business segment; analytical assessment of the competitiveness and competitive position of the business segment; analysis of resource potential and efficiency of production capacity of the business segment; assessment of innovation and investment activity of the business segment; analysis of the efficiency of the business segment; analysis of the state of execution of budgets of revenues, expenditures, profits; analysis of management efficiency and quality.

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Rahayu, Resi, Rangga Putra Ananto, and Rini Frima. "Segmented Reporting Analysis Pada Anandia Bakery." Akuntansi dan Manajemen 11, no. 1 (June 1, 2016): 1–17. http://dx.doi.org/10.30630/jam.v11i1.95.

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Companies need to know the profit contribution generated by each marketing area owned. To know the profit contribution of each marketing area, it is necessary to create income statement with segmented reporting approach (segmented reporting) each marketing area. Segmented reporting contains information about the amount of sales and certain the costs each marketing area. The purpose of this study is to determine the profit contribution generated by each marketing area in Anandia Bakery April 2017. This study uses variable costing method, which is useful to determine the cost of production just based on variable costs. The results of this study stated that all marketing areas owned by Anandia Bakery in April of 2017 are profitable. It can evidenced by the percentage of segment margin ratio for each large marketing area, it is above 40%. When the result of margin ratio more larger, the profit contribution that given by the marketing area is getting better.

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Berger, Philip G., and Rebecca N. Hann. "Segment Profitability and the Proprietary and Agency Costs of Disclosure." Accounting Review 82, no. 4 (July 1, 2007): 869–906. http://dx.doi.org/10.2308/accr.2007.82.4.869.

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We exploit the change in U.S. segment reporting rules (from SFAS No. 14 to SFAS No. 131) to examine two motives for managers to conceal segment profits: proprietary costs and agency costs. Managers face proprietary costs of segment disclosure if the revelation of a segment that earns high abnormal profits attracts more competition and, hence, reduces the abnormal profits. Managers face agency costs of segment disclosure if the revelation of a segment that earns low abnormal profits reveals unresolved agency problems and, hence, leads to heightened external monitoring. By comparing a hand-collected sample of restated SFAS No. 131 segments with historical SFAS No. 14 segments, we examine at the segment level whether managers' disclosure decisions are influenced by their proprietary and agency cost motives to conceal segment profits. Specifically, we test two hypotheses: (1) when the proprietary cost motive dominates, managers tend to withhold the segments with relatively high abnormal profits (hereafter, the proprietary cost motive hypothesis), and (2) when the agency cost motive dominates, managers tend to withhold the segments with relatively low abnormal profits (hereafter, the agency cost motive hypothesis). Our results are consistent with the agency cost motive hypothesis, whereas we find mixed evidence with regard to the proprietary cost motive hypothesis.

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Obradović, Vladimir, Marko Milašinović, and Jasmina Bogićević. "Segment disclosures in the financial statements of stock companies in the Republic of Serbia and the Republic of Croatia." Ekonomski horizonti 23, no. 1 (2021): 55–70. http://dx.doi.org/10.5937/ekonhor2101055o.

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Information about the segments of a company is an important basis for making business decisions. In order for decisions based on segment information to be adequate, that information should be communicated in accordance with regulations. This paper is aimed at examining the adequacy of the segment information of listed companies in the Republic of Serbia and the Republic of Croatia and determining whether the volume of disclosed financial segment information is related to the company size and character of the audit firm. The research reveals that, in general, the disclosure of segment information is not fully in line with the International Financial Reporting Standard 8 - Operating Segments and that the joint-stock companies with a higher value of their total assets disclose financial segment information in more detail. However, there is no statistically significant difference in the amount of the segment information disclosed between the companies whose financial statements are audited by large audit firms and those that are the clients of other audit firms.

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Auer, Kurt V. "IAS 14 (Segment Reporting): Inhalte/Schnittstellen zum Controlling." Controlling & Management 48, S8 (July 2004): 4–11. http://dx.doi.org/10.1365/s12176-004-0428-9.

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McDaniel, Michael C., and S. Tanveer Rab. "Public Reporting in ST Segment Elevation Myocardial Infarction." Interventional Cardiology Clinics 5, no. 4 (October 2016): 561–67. http://dx.doi.org/10.1016/j.iccl.2016.06.012.

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Sulik-Górecka, Aleksandra. "Information Value of the Segment Reporting in the Polish Energy Sector." New Trends in Production Engineering 3, no. 1 (August 1, 2020): 394–406. http://dx.doi.org/10.2478/ntpe-2020-0033.

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AbstractConventional energy sources dominate in the Polish energy sector, which is a huge risk to meeting environmental protection requirements. Polish energy companies are facing challenges related to meeting the requirements of the European Union and the National Energy Policy. The paper attempts to answer the question whether the ongoing discussion on the future of the energy sector, dealing with such issues as development of renewable energy sources is reflected in the annual financial reports of companies listed on the Warsaw Stock Exchange and covered by the WIG_ENERGY index. This study contributes to the extant literature on financial disclosures in several ways. First, the examination of compliance of segment reporting of selected companies listed on the Polish stock exchange with International Reporting Standards (IFRS) was carried out (particularly IFRS 8 – Operating Segments). Second, the information value of disclosures for investors in the energy industry was assessed. The empirical part was preceded by a description of segment reporting principles in accordance with IFRS 8 and the summary of challenges facing the energy sector in Poland.

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Cuccia, Andrea. "Potential of IFRS 8: Managerial "customization", relevance of subsidiaries and separate financial statements." FINANCIAL REPORTING, no. 1 (February 2018): 103–31. http://dx.doi.org/10.3280/fr2018-001004.

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Nowadays companies are engaged in an increasingly competitive and global arena, where informational imbalances between companies and investors might be seen as a constraint to the correct functioning of markets. Breakdown of infor-mation by segments might be seen as an attempt to intercept different information needs about each circumscribed area of economic activities individually identified within entity-group. This paper is first intended to figure out, by resorting to practical examples, the effects of full management approach on IFRS 8 segment reporting structure. Then, in the light of the state of art arising from IFRS 8 Post-Implementation Review and the latest criticisms, in order to guarantee its useful-ness, it calls for a more awareness of the multi-faceted nature of segment reporting as a planning and control tool. Besides, merit of segment reporting is to recovery subsidiaries data elided within the consolidated financial statements. Following this perspective, separate financial statements, depicting subsidiaries in terms of in-vestments and profits and losses flowing respectively into balance sheet and in-come statements, is bound to provide a synthetic overview of all the business areas occupied by entity-group.

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Latysheva, Anna. "THEORETICAL ASPECTS OF THE DEVELOPMENT OF SEGMENT ACCOUNTING." Bulletin of the South Ural State University series "Economics and Management" 16, no. 2 (2022): 141–49. http://dx.doi.org/10.14529/em220214.

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In the conditions of Russia's transition to the market model of economic management and the global financial crisis, those economic entities, which have several business segments, successfully operate because they diversify their risks. In this connection, the order of allocation of business segments and estimation of their effectiveness becomes of special urgency. In the scientific work, different approaches to treatment of the concepts of segment of activity and internal and external segment reporting are considered. On the basis of the obtained conclusions the concept of segment of activity as an object of internal business accounting is clarified. The specific tasks of accounting of activity segments have been substantiated, which allow to build and carry out the correct accounting, analysis and control of an individual activity segment or their group at the level of an economic entity. Factors and risks, which influence the formation of activity segments, are revealed. The known approaches to classification of activity segments are generalized, and the new classification criteria (as per risk level; industry sector; types of products; external buyers; types of activity; geographical regions; responsibility centers) are offered, allowing to broaden the idea of activity segments as objects of accounting, analysis and control.

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Tabouratzi, Efthalia, Orestis Katsidis, and Eleftherios Charamis. "International Accounting Standards (IAS). Transition of Existing to New Accounting Standards in a Rapid Changing Environment. The Impact of Adoption of New Accounting Standards in the Developed Economies in European Union. Conclusions, Expectations and Perspectives." Journal of Economics and Public Finance 7, no. 4 (August 4, 2021): p78. http://dx.doi.org/10.22158/jepf.v7n4p78.

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Adopting a set of accounting standards on a global level derives from the growing globalization of international economies. However, the transition from old to new ones is challenging in a rapidly changing economic environment. This article presents an assessment of IFRS 8 (Operating Segments) adoption, after replacing IAS 14 (Segment Reporting), and examines the impact occurred in the developed economies within the EU, with relevant considerations referring to the current COVID-19 global pandemic situation.This study analyzes the effect of this controversial standard on segment reporting and attempts to identify the determinants of changes in disclosure practices. Based on a four country sample, the current research identifies specific significant financial information changes, although segmentation remains relatively stable. Furthermore, the study includes relevant considerations on reporting, as reflected from current COVID-19 pandemic.The present research includes a historical reference to the development of the accounting standards under examination. Conclusions, expectations, and future perspectives are also presented in the paper.

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Haight, Timothy D. "Earnings Shortfalls and Strategic Profit Allocations in Segment Reporting." Accounting Horizons 33, no. 4 (June 1, 2019): 37–58. http://dx.doi.org/10.2308/acch-52464.

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SYNOPSIS I examine whether firms strategically classify earnings components when reporting bad earnings news. Specifically, I examine whether firms reporting small earnings shortfalls allocate profits across their business segments in a manner that understates the future implications and within-firm drivers of disappointing earnings performance. I find that firms reporting small earnings shortfalls transfer profits toward segments in which profit rates are more informative for firm value and away from segments that operate in industries with higher frequencies of bad earnings news. In addition, I find that shortfall shifting initially tempers negative market responses to shortfall news, but pricing effects reverse in the months following shortfall announcements. My findings suggest that firms strategically classify earnings components when reporting small earnings shortfalls and that strategic classifications temporarily affect the pricing of shortfall news. Data Availability: Data are available from public sources identified in this paper.

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Journal articles on the topic 'Segment Reporting'

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