Segment disclosures are designed to:
A) disaggregate selected consolidated financial data.
B) condense particular items of consolidated financial data into one financial statement.
C) combine components of consolidated financial data to provide a higher level of summarisation.
D) aggregate revenues and expenses so that only net profit is shown for each important segment.

Question

Quizplus · Accepted Answer

Segment disclosures are meant to provide an in-depth analysis of the different business segments or geographical areas in which a company operates. This is achieved by disaggregating consolidated financial data into more detailed information that can help investors and analysts better understand the company's performance. Option B, C, and D are inaccurate because they do not describe the purpose of segment disclosures.

Segment Disclosures Are Designed To