Under Accounting Standard AASB 8 Operating Segments,segments are delineated on the basis of:
A) industries of operation.
B) differences in risk and return.
C) the internal management and reporting structure.
D) none of the above.

Question

Quizplus · Accepted Answer

According to Accounting Standard AASB 8, segments are delineated on the basis of the internal management and reporting structure. This means that companies should identify their operating segments based on how management reviews and evaluates the performance of each business unit. This could include factors such as the products or services offered, the geographical location of operations, or other factors deemed important by management. The other options, industries of operation and differences in risk and return, may be factors considered in identifying segments, but they are not the primary basis for segmentation under AASB 8.

Under Accounting Standard AASB 8 Operating Segments,segments Are Delineated on the Basis