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Accounting & Reporting

Segment Reporting

Also called: business segments, operating segments, geographic segments

Segment reporting breaks results down by business line or geography, as management itself views them. It's often the most valuable disclosure in an annual report, because a consolidated figure can hide one segment funding another's losses for years. The standard requires segments to be presented the way the chief operating decision maker actually sees them, which limits how far they can be defined for convenience.

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