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AS 17 (issued 2000)
Accounting Standard (AS) 17
Segment Reporting
(This Accounting Standard includes paragraphs set in
bold italic
type
and plain type, which have equal authority. Paragraphs in bold italic type
indicate the main principles. This Accounting Standard should be read in
the context of its objective and the General Instructions contained in
part A of the Annexure to the Notification.)
This Accounting Standard is not mandatory for Small and Medium Sized
Companies, as defined in the Notification. Such companies are however
encouraged to comply with the Standard.
Objective
The objective of this Standard is to establish principles for reporting financial
information, about the different types of products and services an
enterprise produces and the different geographical areas in which it
operates. Such information helps users of financial statements:
(a) better understand the
performance of the enterprise;
(b) better assess the risks and returns of the enterprise; and
(c) make more informed judgements about the enterprise as a whole.
Many enterprises provide groups of products and services or operate in
geographical areas that are subject to differing
rates of profitability,
opportunities for growth, future prospects, and risks. Information about
different types of products and services of an enterprise and its operations
in different geographical areas - often called segment
information - is relevant
to assessing the risks and returns of a diversified or multi-locational enterprise
but may not be determinable from the aggregated data. Therefore, reporting
of segment information is widely regarded
as necessary for meeting the
needs of users of financial statements.
