Identifying reportable segments

segment are primarily of a financial nature;
Explanation:
The interest expense relating to overdrafts and other
operating liabilities identified to a particular segment are
not included as a part of the segment expense unless the
operations of the segment are primarily of a financial
nature or unless the interest is included as a part of the
cost of inventories. In case interest is included as a part of
the cost of inventories where it is so required as per AS 16,
Borrowing Costs, read with AS 2, Valuation of Inventories,
and those inventories are part of segment assets of a
particular segment, such interest is considered as a segment
expense. In this case, the amount of such interest and the
fact that the segment result has been arrived at after
considering such interest is disclosed by way of a note to
the segment result.

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Segment Reporting
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(c) losses on sales of investments or losses on extinguishment
of debt unless the operations of the segment are primarily of
a financial nature;
(d) income tax expense; and
(e) general administrative expenses, head-office expenses, and
other expenses that arise at the enterprise level and relate to
the enterprise as a whole. However, costs are sometimes
incurred at the enterprise level on behalf of a segment. Such
costs are part of segment expense if they relate to the
operating activities of the segment and if they can be directly
attributed or allocated to the segment on a reasonable basis.