Segmental Reporting & Disclosure for AASB- myassignmenthelp.com

Question: Discuss about theSegmental Reporting Disclosure for AASB. Answer: Ideally, entities are seen to operate and conduct business at different levels either product wise, service wise, clientele, legally or even geographically. At all these levels, of course, there exist activities that generate revenue or that are seen to reward the investors at a particular period. It is therefore rightfully for the users of the information to get informed on the decisions available, risk assessment exercise and finally previous firm performance analysis for their best interest and that of the company Crawford(2012.Pg 52) ASSB 114 and 8 has set regulations and guidelines on how the latter expectations of investors should be addressed regarding the segments approach in place. Segments in a firm may likewise be referred to as business unit or departments that are the cash generating in nature. Any cash-generating unit is expected to be held in charge by persons who work on behalf of the investors for the sole purpose of operational control with an eye on revenue generation and these persons are termed to be part of the management since they analyse data and present activities happenings and scenarios while delivering key decisions in the segments. The management is therefore soberly expected to outline all the information and measures considered in decision making. This should range from operations, financials and finally management through dialogue and both statistical and theoretical analysis. At the segmental level, the management reliance is high since he forms the informational basis of how the business is being run hence setting means of assessing business performance. We can further state that all segment disclosures present in a firm through one way or the other it has its roots to the management information available concerning the segments at the time of reporting. The management is therefore expected to be more cautious and responsible on all the matters relating to segments since they form the basis of garbage in/garbage out. Management segmental adoption approach is vital since all the parties within individual interest and that of the business use the information while reporting and disclosing segmental reports. This approach may or may not result in too much private information disclosure to competitors depending on individual ethics and professionalism Deegan(2012.Pg. 30). The access level of information according to management is at time unquestionable thus limited to their discretion. It is from this that he can maliciously and unlawful share the information since no one monitors or regulates what they ought to disclose and to who. However, this is only applicable to persons of management whose ethics and integrity is compromised Bugeja(2015.Pg 320). Likewise, it may not disclose too much info to the competitor but only to the extent in which the management agrees and comply with ethics and professionalism rules on the share of information and secrecy that this applies. Generally, individual management persons intention and professional will is what dictates on the act of insider information and its control Aleksanyan (2015.Pg 50). Highlands Pacific Limited 2016 annual reports inform of the group segments activities to be that of exploring, evaluating and that of industry developments and this is conducted through exploration and evaluation at segments Frieda where copper and gold activities take place, Ramu dealing with nickel cobalt and Star mountain exploration of gold. Highlandss management is seen to report the segments in the note number 21 of notes to financial statements. The management has further outlined the segment units in the statement of significant accounting policies summary (c).The director in the summary report is seen to give over view of events that happened during the year and more so on the excellent progress of star mountain copper-gold segment and possible factors towards it, likewise we are able to be informed by management of April accident that occurred and the next course of action of shutting down that was taken by management Lantto(2007.Pg 23).They further inform on risks analysis and announcement of the next stage of exploration at Sewa Bay. Generally the latter is just sample of management approach information wise on segments Kang(2013.Pg 240) Highland Pacific Ltd Company 2016 annual report has met all segmental requirements while reporting and disclosure as outlined in AASB 8 and IFRS 8 at the point of reporting. All explanation that is deemed importance for decision making has been disclosed in notes and in the summary policies. References Aleksanyan, M. and Danbolt, J., 2015. Segment reporting: Is IFRS 8 really better?. Accounting in Europe, 12(1), pp.37-60. Bugeja, M., Czernkowski, R. and Moran, D., 2015. The impact of the management approach on segment reporting. Journal of Business Finance Accounting, 42(3-4), pp.310-366. Crawford, L., Crawford, L., Extance, H., Helliar, C. and Power, D., 2012. Operating segments: The usefulness of IFRS 8. ICAS. Deegan, C., 2012. Australian financial accounting. McGraw-Hill Education Australia. Kang, H. and Gray, S.J., 2013. Segment reporting practices in Australia: Has IFRS 8 made a difference?. Australian Accounting Review, 23(3), pp.232-243. Lantto, A.M., 2007. Does IFRS improve the usefulness of accounting information in a code-law country?.