Segment reporting
Segment reporting disaggregates a group's financial information by operating segment — the divisions management monitors separately — allowing users to assess the different revenue, profit and risk profiles within a diversified business.
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A group reporting €900 million of consolidated revenue discloses how that total splits across its operating segments: €500 million from Segment A, €300 million from Segment B and €100 million from Segment C. Each segment also reports its own profit, assets and other measures, and the segment totals reconcile exactly to the consolidated statements, letting analysts value each division separately.
Where it fits
SubjectFinancial AccountingAdvancedTopicThe Financial StatementsAdvanced