Sunday, October 16, 2011

What is segment reporting?


A type of financial reporting in which the firm discloses information by identifiable industry segments. For example, Union Pacific Corporation reports revenues, income, assets, depreciation, and capital expenditures for each of four segments: transportation, oil and gas, mining, and land. Segment reporting is required by the SEC in an attempt to provide stockholders and the public with better financial data. Also called line-of-business reporting. See also industry segment


Business Segment Reporting

What Does It Mean?
What Does Business Segment Reporting Mean?
Giving separate accounts of a company's individual divisions, subsidiaries or other segments. In an annual report, the purpose of business segment reporting is to provide an accurate picture of a public company's performance to its shareholders. For upper management, business segment reporting is used to evaluate each segment's income, expenses, assets, liabilities and so on in order to assess profitability and riskiness.    


Investopedia Says
Investopedia explains Business Segment Reporting

A bank, for example, might use business segment reporting to separately account for its banking, credit card and financial services segments. If the bank had operations in both North America and Latin America, it might report on those separately as well.


Read more: http://www.investopedia.com/terms/b/business-segment-reporting.asp#ixzz1aulrjM8s

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