Advanced Accounting - Ch14.pptVIP

Beams, Advanced Accounting 10e, Ch. 14 ? Pearson Education, Inc. publishing as Prentice Hall Operating Segments FASB Statement No. 131 governs segment reporting Firms internal reporting and evaluation system: If it is geographically based External segment reporting is geographically based If it is product-line or industry based External reporting is product-line or industry based Operating Segment (def.) A component of a business enterprise Engages in business activities Revenues and expenses Includes intercompany amounts Operating results are reviewed by chief operating decision maker Discre