Subject category:
Finance, Accounting and Control
Published in:
2009
Length: 18 pages
Data source: Published sources
Topics:
Segment; Segment reporting; Geographical segments; Industry segments; Accounting Standard (AS) 17; International Accounting Standard (IAS) 14; International Financial Reporting Standards (IFRS) 8; Statement of Financial Accounting Standards (SFAS) 131; Segment revenue; Segment expense; Segment result; Segment liability; Segment asset; Reportable segments; Primary and secondary segments; Segment accounting policies; Reconciliation
Abstract
In today''s world, understanding and interpreting accounting numbers has become more challenging than ever before. This is due to the fact that the world is becoming smaller and smaller and more integrated. Business corporations are spread across the globe and operate in diverse economic environments. And also, the business model of any business unit is comprised of many verticals, each vertical is unique in terms of risk-return dimension. Financial health cannot be assessed properly with data provided by the balance sheet, profit and loss account and cash flow statements. Consequently, business corporations need to report accounting data in the disaggregated form. In this context, ''segment reporting'' is the key. Segment reporting presents business results in a more disaggregated form - breaking the aggregate performance into business verticals and over geographical regions. This case demonstrates the practice of segment reporting in India''s global information technology company, Infosys Technologies Limited. The case assures students of many learning outcomes at the end of the case discussion, which are: (1) appreciating the concept and practice of segment reporting; (2) familiarisation with the relevant accounting standards and their application to the particular case in point; and finally (3) the managerial and strategic significance of segment reporting.
About
Abstract
In today''s world, understanding and interpreting accounting numbers has become more challenging than ever before. This is due to the fact that the world is becoming smaller and smaller and more integrated. Business corporations are spread across the globe and operate in diverse economic environments. And also, the business model of any business unit is comprised of many verticals, each vertical is unique in terms of risk-return dimension. Financial health cannot be assessed properly with data provided by the balance sheet, profit and loss account and cash flow statements. Consequently, business corporations need to report accounting data in the disaggregated form. In this context, ''segment reporting'' is the key. Segment reporting presents business results in a more disaggregated form - breaking the aggregate performance into business verticals and over geographical regions. This case demonstrates the practice of segment reporting in India''s global information technology company, Infosys Technologies Limited. The case assures students of many learning outcomes at the end of the case discussion, which are: (1) appreciating the concept and practice of segment reporting; (2) familiarisation with the relevant accounting standards and their application to the particular case in point; and finally (3) the managerial and strategic significance of segment reporting.
Settings
Location:
Industry:
Size:
Over USD3 billion revenue, second largest IT company of India
Other setting(s):
September 2008