The IASB's segment reporting standard IAS 14
A) gives management more discretion to identify geographic segments.
B) has primary segment which has higher disclosure requirement.
C) prohibits a matrix approach.
D) restricts the criteria for identifying segments to assessing "risks and returns".

Question

Quizplus · Accepted Answer

IAS 14 requires disclosure of information by segment, with the primary segment being the segment with the higher disclosure requirement. This may be based on factors such as the source of revenue or cost, or the nature of products/services offered. The standard does allow for some discretion in identifying segments, but this should be based on internal reporting used by management, and should not result in excessive aggregation or omission of information. The standard does not prohibit a matrix approach, but does require additional disclosures in such cases. The criteria for identifying segments include factors such as the nature of the products or services, the geographical location, the regulatory environment, and the internal reporting. The assessment of risks and returns can also be a factor, but is not the only criterion used.

The IASB's Segment Reporting Standard IAS 14