What is the main objective in disclosing segmented information?
A)It provides a broader view of the entire economic entity controlled by the parent.
B)It provides information to assess the risk of different operating units.
C)It increases the income of different operating segments.
D)It reduces the cost of financial reporting.

Question

Quizplus · Accepted Answer

The main objective in disclosing segmented information is to provide information to assess the risk of different operating units. This information helps investors and other stakeholders make informed decisions about the company's financial performance and future prospects. While segmented information may provide a broader view of the entire economic entity controlled by the parent, increasing income of operating segments or reducing the cost of financial reporting are not the main objectives.

What Is the Main Objective in Disclosing Segmented Information