Identifying reportable segments

Business and Geographical Segments
24. Business and geographical segments of an enterprise for external
reporting purposes should be those organisational units for which
information is reported to the board of directors and to the chief executive
officer for the purpose of evaluating the unit’s performance and for making
decisions about future allocations of resources, except as provided in
paragraph 25.
25. If internal organisational and management structure of an enterprise
and its system of internal financial reporting to the board of directors and
the chief executive officer are based neither on individual products or
services or groups of related products/services nor on geographical
areas, paragraph 20(b) requires that the directors and management of
the enterprise should choose either business segments or geographical

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segments as the primary segment reporting format of the enterprise
based on their assessment of which reflects the primary source of the
risks and returns of the enterprise, with the other as its
secondary reporting format. In that case, the directors and
management of the enterprise should determine its business
segments and geographical segments for external reporting purposes
based on the factors in the definitions in paragraph 5 of this
Standard, rather than on the basis of its system of internal financial
reporting to the board of directors and chief executive officer,
(a) if one or more of the segments reported internally to the directors