The IASB's segment reporting standard IAS 14
A) gives management more discretion to identify geographic segments.
B) bases its requirements on the company's organization structure and internal reporting system.
C) contradicts proposals for reform issued by the FASB.
D) restricts the criteria for identifying segments to assessing "risks and returns".

Question

Quizplus · Accepted Answer

IAS 14 requires companies to report segment information based on its organization structure and internal reporting system. It provides specific criteria for identifying reportable segments, such as aspects of the business that are subject to risks and returns that are different from those of other segments. It does not contradict proposals for reform issued by the FASB, nor does it give management more discretion to identify geographic segments.

The IASB's Segment Reporting Standard IAS 14