Which of the following is a reason to report segmented accounting information for multinational enterprises?
A)There are different risks in different parts of the world that a reader may need to know about.
B)Different lines of business have different levels of risk that may affect business success.
C)Growth opportunities differ from one nation to another that could affect share value.
D)All of the above are reasons for segmented reporting.

Question

Quizplus · Accepted Answer

All three options are valid reasons for reporting segmented accounting information for multinational enterprises. Different risks in different parts of the world, varying levels of risk across different lines of business, and differences in growth opportunities across nations are all important factors for investors and stakeholders to consider when evaluating the financial performance and prospects of a multinational enterprise. Reporting segmented accounting information in a clear and transparent manner can help investors and stakeholders make more informed decisions about where to invest their funds and which areas of the business are likely to yield the highest returns.

Which of the Following Is a Reason to Report Segmented