A major argument against segment disclosure is that
A) gross margins will fall
B) transfer pricing activity will increase
C) in some cases it may be misleading
D) MNEs will have to do more mergers

Question

Quizplus · Accepted Answer

The major argument against segment disclosure is that in some cases it may be misleading. This can be due to factors such as differences in accounting policies or inconsistent allocation of expenses among segments. Critics argue that this can result in distorted financial statements that do not accurately represent the overall performance of the company.

A Major Argument Against Segment Disclosure Is That