A key objective of providing financial reporting information by segment is:
A) to allow detailed analysis to be undertaken by users such as segment profit margin analysis;
B) to allow the user to better understand the entity's future performance;
C) to highlight poorly performing areas of an entity's business to users;
D) to allow users to better assess the entity's risks and returns.

Question

Quizplus · Accepted Answer

Segment reporting helps users assess the risks and returns of different parts of a business, providing insights into the entity's overall risk profile and performance potential.

A Key Objective of Providing Financial Reporting Information by Segment