In some entities, some managers are responsible for different product and service lines worldwide, whereas other managers are responsible for specific geographical areas. The chief operating decision maker regularly reviews the operating results of both sets of components, and financial information is available for both. In that
situation, the entity shall determine which set of components constitutes the
operating segments by reference to the core principle.
core principal -
An entity shall disclose information to enable users of its financial
statements to evaluate the nature and financial effects of the business
activities in which it engages and the economic environments in which it
operates.
now my question is i want a proper example which explain the above lines
i mean to say if georaphical n business segment have both required to report ...
than what is the best criteria to judge ...to report by which method ..or to which segment we give importance ...
please i want expert suggestion .....
CAclubindia
