Separately identifiable parts of the business operations of a company or group whose activities, assets, risks, and returns can be clearly identified. Companies are obliged to disclose in their annual report and accounts certain financial information relating to these business segments.
Geographic segments refer to specific geographical areas, typically countries or groups of countries, where a company operates. According to International Financial Reporting Standard (IFRS) 8, companies must disclose certain financial data for each geographic segment in their financial statements.
Segmental reporting entails the disclosure in annual accounts and reports of financial results of major operating and geographic segments within a diversified group of companies. This practice offers investors insight into the profitability, risk, and growth prospects for individual segments of a business.
