Product details

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.