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American Institute of Certified Public Accountants Segment Information 1 1. Statement of Financial Accounting Standards No. 14, Financial Reporting for Segments of a Business Enterprise, requires the inclusion of certain information about an entity's operations in different industries, its foreign operations and export sales, and its major customers ( referred to in this Statement as " segment information") in annual financial statements that are intended to present financial position, results of operations, and changes in financial position in conformity with generally accepted accounting principles. Disclosure of segment information requires the disaggregation of certain significant elements of an entity's financial statements, such as revenue, operating profit or loss, identifiable assets, depreciation, and capital expenditures. This Statement provides guidance to an auditor in examining and reporting on financial statements that are required to include segment information in conformity with FASB Statement No. 14. 2. Segment information is one of the disclosures required by generally accepted accounting principles as an integral part of financial statements. The purpose of segment information is stated in paragraph 5 of FASB Statement No. 14: The purpose of the information required to be reported by this Statement is to assist financial statement users in analyzing and understanding the enterprise's financial statements by permitting better assessment of the enterprise's past performance and future prospects. . . . information prepared in conformity with this State- 1 The meaning of the term " segment information" in this Statement differs from that of the term " segment" in footnote 2 of SAS No. 14, Special Reports. Copyright © 1977 by the American Institute of Certified Public Accountants, Inc. 1211 Avenue of the Americas, New York, N. Y. 10036 Statement on Auditing Standards Issued by the Auditing Standards Executive Committee December 1977 21 AICPA