what does financial reporting for segments of a business enterprise involve?. course hero

What will I learn in the segment reporting module?

Information reported in a business enterprise’s financial statements constitutes an important input to financial statement analysis which is generally made in investment and lending decisions. Investors and lenders analyse information relating to a business enterprise to evaluate the risk and return associated with an investment or lending alternative.

Why do users of financial statements need segment information?

This course covers the accounting for business combinations (ASC 805), the preparation of consolidated financial statements (ASC 810), and other related topics including, but not limited to: step-by-step acquisition, deconsolidation, segments reporting, and the goodwill impairment test. This course begins with a discussion of the scope of ASC 805 and the differences between …

Does disclosing information about segments weaken an enterprise’s competitive position?

Jan 25, 2015 · 32. A segment of a business enterprise is to be reported separately when the revenues of the segment exceed 10 percent of the a. total combined revenues of all segments reporting profits. b. total revenues of all the enterprise's industry segments. c. total export and foreign sales. d. combined net income of all segments reporting profits.

What is included in the accounting for business combinations course?

Dec 06, 2017 · Segment reporting means gives the detail of the financial result of that operating unit of the company which can play a significant role in the decision criteria of the investors. A Segment or unit of the business firm is required to be reported in the financial statement when the segment generates more than 10% profit or revenue of the firm's ...

Why is segment reporting important?

Thus the objective of segment reporting is to provide information about the different business activities of the company and the economic environments in which the company operates. This information will help the use ...

What is an operating segment?

An operating segment is a component of a public entity that has all of the following characteristics. It engages in business activities from which it may recognize revenue and incur expenses, including revenue and expenses relating to transactions with other components of the same public entity.

Can two or more operating segments be aggregated into one?

Two or more operating segments may be aggregated into a single operating segments if doing so is consistent with the objective, they have similar economic characteristics, and they have similar products and services, production processes, classes of customers, distribution methods, and regulatory environments.