Potential costs of providing segment information include:
A) Management taking extra risks in order to attempt to generate increased returns in its segment.
B) Allowing current or potential investors to identify that the entity is earning high profits in a segment.
C) Disclosing that a segment is making a loss. This may lead to take-over bids by other organisations.
D) Allowing current or potential competitors to identify that the entity is earning high profits in a segment. This may increase competition through new entrants or an attempt to replicate the factors leading to the entity's success.
E) All of the given answers.

Question

Quizplus · Accepted Answer

The Answer of Potential costs of providing segment information include:
A) Management taking extra risks in order to attempt to generate increased returns in its segment.
B) Allowing current or potential investors to identify that the entity is earning high profits in a segment.
C) Disclosing that a segment is making a loss. This may lead to take-over bids by other organisations.
D) Allowing current or potential competitors to identify that the entity is earning high profits in a segment. This may increase competition through new entrants or an attempt to replicate the factors leading to the entity's success.
E) All of the given answers.

Potential Costs of Providing Segment Information Include