Which of the following statements concerning departmental (segmental) accounting is correct?
A) Segment/departmental information can only be produced by large organisations.
B) Segment/departmental information is only produced for use by internal management.
C) A balance sheet is normally produced for each segment of the business under segmental accounting.
D) There is an accounting standard dealing with segment reporting.

Question

Quizplus · Accepted Answer

There is an accounting standard, IAS 14/IFRS 8, dealing with segment reporting, which requires companies to disclose information about their operating segments in the financial statements. A, B and C are all incorrect statements. Small businesses can also use segmental accounting to improve management of their operations, segment/departmental information is used by both internal and external users, and balance sheets are not normally produced for each segment but rather for the business as a whole.

Which of the Following Statements Concerning Departmental (Segmental) Accounting Is