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AS 17




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.


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.


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.    


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





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