MODERN TRENDS OF EXTERNAL AND INTERNAL SEGMENT FINANCIAL REPORTING
MODERN TRENDS OF EXTERNAL AND INTERNAL SEGMENT FINANCIAL REPORTING

Summary/Abstract: Segmental financial reporting is crucial for realizing the lasting competitive advantage of an entity. Modern business conditions require businesses to adapt and enhance the organization's business performance and specifics to survive in the market. In order to increase the efficiency of management and decision-making in large business entities, there is a need to divide or decentralize the business entity. These separate parts - segments produce results and significantly participate in the overall business of the entity to require separate information for each segment separately. Investigation of financial reporting issues by business segments is current, in contemporary business conditions, for external and internal users of financial statements. This paper will identify the term segment as well as the information required to be disclosed by business segment, in accordance with International Financial Reporting Standard 8 - Business Segments, which has replaced International Accounting Standard 14 - Segment Reporting. IFRS 8, in relation to IAS 14,introduced a correspondence between internally reported segments and externally reported segments, because everything that is relevant to internal users of information is considered to be relevant to external users as well. This contributes to a different approach in defining organizational units - business segments and harmonization of external and internal financial statements.

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