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The management approach

Standard-setters conclude that segment information used for internal purposes is also relevant for decision making by outside parties

Managements of all but the simplest of enterprises develop a variety of internal financial reports to help them run their businesses. Intended to enable senior decision makers to assess the performance of the enterprise's components and decide how to allocate its resources, these reports are tailored to suit the structure of the internal organization and management's objectives. New CICA Handbook Section 1701, "Segment disclosures," and an amendment to Section 1750, "Interim financial reporting to shareholders," will require certain enterprises to disclose ...

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