Reporting Financial Information by Segment: A Comment of the American Accounting Association on the Iasc Draft Statement of Principles
ACCOUNTING HORIZONS, Vol 10, No 1, March 1996
Posted: 28 Jun 1998
This paper summarizes the views of the American Accounting Association on the IASC's initial proposed amendments to IAS 14, Reporting Financial Information by Segment. The paper finds that extant academic literature views current IAS and US rules on geographic segment disclosure, relatively ineffective. The report analyses the two proposed solutions for designing segments, the risk and return approach (advocated by IASC) and the Management approach (of the FASB). The paper finds in favor of the former. The report makes specific recommendations for tightening of thresholds for reporting and simplification of segment disclosure requirements.
JEL Classification: M41, K22
Suggested Citation: Suggested Citation