The management approach to the definition of segments for financial reporting expects a company to:
I.Report disaggregated information on the same organizational basis as used by the company's internal decision makers.
II.Report disaggregated information for at least ten segments.
A)I
B)II
C)Both I and II
D)Neither I nor II

Question

Quizplus · Accepted Answer

The management approach to segment reporting requires a company to report disaggregated information on the same internal organizational basis as used by the company's internal decision makers. It does not specify a minimum number of segments that must be reported, so II is not correct. Therefore, only I is correct, making the best choice A.

The Management Approach to the Definition of Segments for Financial