The Effect of Revised IAS 14 on Segment Reporting by IAS Companies

Posted: 3 Jun 2004

See all articles by Jenice J. Prather-Kinsey

Jenice J. Prather-Kinsey

University of Alabama at Birmingham

Gary K. Meek

Oklahoma State University - Stillwater - School of Accounting

Abstract

International Accounting Standard (IAS) 14 on segment reporting was revised in 1997. IAS 14R substantially changed segment reporting requirements in response to numerous criticisms of the original standard. The objective of this study is to determine how IAS 14R affected the segment disclosure practices of companies claiming to comply with IAS. This paper examines the following questions: (1) What items of information are disclosed under IAS 14 and IAS 14R? Was there a gain or a loss of information disclosed for business and geographic segments with the implementation of IAS 14R? (2) Has the number of business and geographic segments reported by companies changed with the implementation of IAS 14R? (3) Are companies disclosing the items required by IAS 14R? (4) Are companies' segment reporting practices related to size, country of domicile, industry, international listing status, and having a then-Big 5 auditor? We find that the impact of IAS 14R is mixed. Companies are responding to IAS 14R, but not wholly embracing it. Our findings suggest that companies audited by a Big 5 (now Big 4) firm and, to a lesser extent, companies that are larger, listed on multiple stock exchanges, and from Switzerland have greater compliance with IAS 14R than other companies in our study.

Keywords: Segment reporting, segments, segment disclosures, IAS 14 Revised, international accounting standards, International Accounting Standards Board

JEL Classification: M41, M45, M47, M49

Suggested Citation

Prather-Kinsey, Jenice J. and Meek, Gary K., The Effect of Revised IAS 14 on Segment Reporting by IAS Companies. Available at SSRN: https://ssrn.com/abstract=554484

Jenice J. Prather-Kinsey

University of Alabama at Birmingham ( email )

Birmingham, AL 35294-4460
United States

Gary K. Meek (Contact Author)

Oklahoma State University - Stillwater - School of Accounting ( email )

College of Business Administration
345 Business Building
Stillwater, OK 74078
United States
405-744-5100 (Phone)
405-744-5180 (Fax)

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