Business Reportable segment

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Reportable segments An entity must report separately information about each operating segment that:

 Has been identified in accordance with the definition of an operating segment shown above;

 Or is aggregated with another segment; and

 Or exceeds the quantitative thresholds. If the total external revenue reported by operating segments constitutes less than 75% of the entity’s total revenue, then additional operating segments must be identified as reporting segments, even if they do not meet the criteria, until 75% of revenue is included in reportable segments

Disclosure IFRS 8 states that an entity must disclose information so that users of the financial statements can evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates.

The information that is to be disclosed is:

 A measure of profit or loss for each reportable segment;

 A measure of total assets liabilities for each reportable segment if such an amount is reported regularly to the chief operating decision maker;

 Information about the following items if they are specified and included in the measure of segment profit that is reported to the chief operating decision maker:  revenues from external customers;

 revenues from transactions with other operating segments of the same entity;

interest revenue;  interest expense;  depreciation and amortisation;

 material items of income and expense in accordance with IAS 1

 

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An annual report is a comprehensive report on a company's activities throughout the preceding year.

Annual reports are intended to give shareholders and other users, who are interested, information about the company's activities and financial performance.

Most jurisdictions, including Nigeria, require companies to prepare and disclose annual reports, and many require the annual report to be filed at the company's registry, in Nigeria the Corporate Affairs Commission (CAC).

Companies listed on a stock exchange are also required to report at more frequent intervals (depending upon the rules of the stock exchange involved).

1.2 Content of annualreports In addition to the audited financial statements, annual reports contain a great deal of extra information. This information might be:

 numerical and/or narrative; and  financial and non-financial.

 

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Mandatory and voluntary disclosures Disclosures may be a mandatory requirement of the law or other regulations, or they may be provided as voluntary disclosures by a company.

In practice, the disclosures by a company are likely to be a mixture of mandatory and voluntary disclosures. The nature and amount of mandatory disclosures depends on the laws and regulations of the country.

 Some disclosures are required by law. For example, companies are required to prepare an annual report and accounts, and present these to the shareholders.

Company law specifies what the directors’ report and the accounts must contain, and in addition other regulations about content apply such as the requirements of Financial Reporting standards.