TITLE:
Segment disclosures are widely regarded as some of the most useful disclosures in financial reports because of the extent to which they disaggregate financial information into meaningful and often revealing groups. Discuss.
Executive Report:
Firstly, our report talks about the objectives and requirement of segmental disclosure followed by brief introduction of the four FTSE companies selected.
Since, each of the four companies may have resemblances and variances on how they report the operating segments, we will discuss how much segmental information is provided, whether the companies are in compliance with relevant accounting standards, and discuss the similarities and differences between their disclosures and practices.
Next, we will analyze the relative performance of each reportable segment of the four FTSE companies that are chosen for this report. Besides this, few factors that help to identify the similarities and dissimilarities will also be determined. Lastly, we will comment on whether the information provided is useful to the investors to make a judgment regarding the investment decision. The report shall wind-up with a conclusion/implication of our analysis.
Introduction:
Segment reporting refers to the reporting of operating segments of an organization incorporated with the financial statements …show more content…
However, firm size is a significant element of disclosure practices. Bigger firms tend to provide more information in the disclosure because it reduces the political cost and risk of litigation. On the other hand, smaller firms disclose less information with the fear of losing their competitive position. Among the four companies, Tesco is the bigger firm in terms of market value, which is also reflected, in its more detailed and itemized segmental analysis. (Alfariah.M & Alanezi.F,
Segment disclosures are widely regarded as some of the most useful disclosures in financial reports because of the extent to which they disaggregate financial information into meaningful and often revealing groups. Discuss.
Executive Report:
Firstly, our report talks about the objectives and requirement of segmental disclosure followed by brief introduction of the four FTSE companies selected.
Since, each of the four companies may have resemblances and variances on how they report the operating segments, we will discuss how much segmental information is provided, whether the companies are in compliance with relevant accounting standards, and discuss the similarities and differences between their disclosures and practices.
Next, we will analyze the relative performance of each reportable segment of the four FTSE companies that are chosen for this report. Besides this, few factors that help to identify the similarities and dissimilarities will also be determined. Lastly, we will comment on whether the information provided is useful to the investors to make a judgment regarding the investment decision. The report shall wind-up with a conclusion/implication of our analysis.
Introduction:
Segment reporting refers to the reporting of operating segments of an organization incorporated with the financial statements …show more content…
However, firm size is a significant element of disclosure practices. Bigger firms tend to provide more information in the disclosure because it reduces the political cost and risk of litigation. On the other hand, smaller firms disclose less information with the fear of losing their competitive position. Among the four companies, Tesco is the bigger firm in terms of market value, which is also reflected, in its more detailed and itemized segmental analysis. (Alfariah.M & Alanezi.F,