Identifying reportable segments

53. In measuring and reporting segment revenue from transactions
with other segments, inter-segment transfers should be measured on
the basis that the enterprise actually used to price those transfers. The
basis of pricing inter-segment transfers and any change therein should
be disclosed in the financial statements.
54. Changes in accounting policies adopted for segment reporting that
have a material effect on segment information should be disclosed. Such
disclosure should include a description of the nature of the change, and
the financial effect of the change if it is reasonably determinable.
55. AS 5 requires that changes in accounting policies adopted by the
enterprise should be made only if required by statute, or for compliance
with an accounting standard, or if it is considered that the change would
result in a more appropriate presentation of events or transactions in the
financial statements of the enterprise.
56. Changes in accounting policies adopted at the enterprise level that
affect segment information are dealt with in accordance with AS 5. AS 5
requires that any change in an accounting policy which has a material effect
should be disclosed. The impact of, and the adjustments resulting from,
such change, if material, should be shown in the financial statements of the
period in which such change is made, to reflect the effect of such change.
Where the effect of such change is not ascertainable, wholly or in part, the
fact should be indicated. If a change is made in the accounting policies
which has no material effect on the financial statements for the current period
but which is reasonably expected to have a material effect in later periods,
the fact of such change should be appropriately disclosed in the period in
which the change is adopted.
57. Some changes in accounting policies relate specifically to segment
reporting. Examples include changes in identification of segments and
changes in the basis for allocating revenues and expenses to segments. Such
changes can have a significant impact on the segment information reported

---

256 
AS 17
but will not change aggregate financial information reported for the enterprise.
To enable users to understand the impact of such changes, this Standard
requires the disclosure of the nature of the change and the financial effect of
the change, if reasonably determinable.