AS 17
SEGMENT REPORTING
Objective:
The
objective of this Statement is to establish principles for
reporting financial information, about the different types of
products and services an enterprise produces and the different
geographical areas in which it operates.
Scope:
This
standard is applicable to
a.
General purpose financial statements
b.
Consolidated financial statements.
Applicable
to the following companies from April, 2001:
a.
Listed enterprises
b.
Enterprises having more than Rs. 50 crores turnover.
|
|
Note: This
standard is to be complied fully and not selectively by an
enterprise.
Definitions:
Business segment:
It means
distinguishable component of an
enterprise, engaged in providing an individual product or
service, subject to risks and returns different from
other business segments.
Geographical segment:
It is
distinguishable component of an
enterprise, engaged in providing products or services
within a particular economic environment, subject to risks and
returns that are different from those of components operating in
other economic environments
Reportable segment:
The
following are called reportable segment if:
Its revenue
from sales to external customers is 10 per cent more of the
total revenue, or
Its segment
result, whether profit or loss, is 10 per cent or more of the
combined result of all segments in profit or loss, or
Its segment
assets are 10 per cent or more of the total assets of all
segments.
Note:
If total
revenue attributable to all reportable segment is less than 75%
of the total enterprises revenue, additional segments should be
identified as reportable segments, even if they do not meet the
10% thresholds, until at least 75% of total enterprises revenue
is included in reportable segments.
If RISKS
AND RETURNS are affected by
Differences in the products and services
BUSINESS
SEGMENT
Operation
in different
GEOGRAPHICAL
SEGMENT
countries
or geographical areas
Disclosure requirements:
The
following is to be disclosed:
a. Segment
revenue from sales to external customers
b. Segment
revenue from transactions with other segments
c. Segment
result
d. Total
carrying amount of segment assets;
e. Total
amount of segment liabilities;
f.
Additions to tangible and intangible fixed assets;
g.
Depreciation and amortization for the period.
h.
Significant other non-cash expenses
|