A problem with segment disclosure is that
A) IAS 14 has been rejected by MNEs
B) there are too many segments
C) segment reporting is only within the UK scope of the audit
D) management will be disclosing its own view of segments with significant differences in risk and return

Question

Quizplus · Accepted Answer

The problem with segment disclosure is that management will be disclosing its own view of segments with significant differences in risk and return. This can lead to a lack of comparability and transparency in financial reporting. It is important for auditors to critically evaluate management's segment disclosure and ensure that it is in compliance with accounting standards and accurately reflects the company's business activities.

A Problem with Segment Disclosure Is That