Identifying reportable segments

36. Assets and liabilities that relate jointly to two or more segments
should be allocated to segments if, and only if, their related revenues 
and expenses also are allocated to those segments.
37. The way in which asset, liability, revenue, and expense items are
allocated to segments depends on such factors as the nature of those
items, the activities conducted by the segment, and the relative
autonomy of that segment. It is not possible or appropriate to specify a
single basis of allocation that should be adopted by all enterprises; nor
is it appropriate to force allocation of enterprise asset, liability, revenue,
and expense items that relate jointly to two or more segments, if the
only basis for making those allocations is arbitrary. At the same time,
the definitions of segment revenue, segment expense, segment assets,
and segment liabilities are interrelated, and the resulting allocations
should be consistent. Therefore, jointly used assets and liabilities are
allocated to segments if, and only if, their related revenues and expenses
also are allocated to those segments. For example, an asset is included
in segment assets if, and only if, the related depreciation or amortisation
is included in segment expense.
Disclosure
38. Paragraphs 39-46 specify the disclosures required for reportable
segments for primary segment reporting format of an enterprise. Paragraphs
47-51 identify the disclosures required for secondary reporting format of an
enterprise. Enterprises are encouraged to make all of the primary-segment
disclosures identified in paragraphs 39-46 for each reportable secondary
segment although paragraphs 47-51 require considerably less disclosure on
the secondary basis. Paragraphs 53-59 address several other segment
disclosure matters. Illustration III attached to this Standard illustrates the
application of these disclosure standards.
Explanation:
In case, by applying the definitions of ‘business segment’ and ‘geographical
segment’, it is concluded that there is neither more than one business

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Segment Reporting
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segment nor more than one geographical segment, segment information as
per this Standard is not required to be disclosed. However, the fact that there
is only one ‘business segment’ and ‘geographical segment’ is disclosed by 
way of a note.