Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 24 - Full Disclosure in Financial Reporting - Review and Practice - Brief Exercises - Page 1446: BE24-4

Answer

Whereas consolidated results offer an overview of a diversified company's performance, segmented results are better since they offer specific information about each segment's performance; thus, it makes it easy to make projections about how a segment will progress. Segmented reports are better since they disclose the worth of each segment. Accordingly, details offered under segment reports are more detailed and pertinent than those offered in consolidated reports.

Work Step by Step

Whereas consolidated results offer an overview of a diversified company's performance, segmented results are better since they offer specific information about each segment's performance; thus, it makes it easy to make projections about how a segment will progress. Segmented reports are better since they disclose the worth of each segment. Accordingly, details offered under segment reports are more detailed and pertinent than those offered in consolidated reports.
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