[Illustrative Checklist] Disclosure requirements under AS 17 | Segment Reporting
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- 2 Min Read
- By Taxmann
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- Last Updated on 31 January, 2023
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The objective of AS 17, Segment Reporting, 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. Such information helps users of financial statements, (a) better understand the performance of the enterprise; (b) better assess the risks and returns of the enterprise; and (c) make more informed judgements about the enterprise as a whole. Many enterprises provide groups of products and services or operate in geographical areas that are subject to differing rates of profitability, opportunities for growth, future prospects, and risks. Information about different types of products and services of an enterprise and its operations in different geographical areas – often called segment information – is relevant to assessing the risks and returns of a diversified or multi-locational enterprise but may not be determinable from the aggregated data. Therefore, reporting of segment information is widely regarded as necessary for meeting the needs of users of financial statements.
As per the stipulation of this standard, an entity must comply with the below-mentioned disclosure requirements:
I. Whether the enterprise has disclosed the following for each reportable segment:
a. segment revenue classified into:
i. Sales to external customers
ii. Transactions with other segments
b. Segment result
c. Total carrying amount of segment assets
d. Total amount of segment liabilities
e. total cost incurred during the period to acquire segment assets that are expected to be used during more than period
i. Tangible fixed assets
ii. Intangible fixed assets
f. Total amount of expense included in the segment result for depreciation and amortisation in respect of segment assets for the period
g. Total amount of significant non-cash expenses, other than depreciation and amortisation in respect of segment assets that were included in segment expense and, therefore, deducted in measuring segment result
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