Segment disclosures have become an integral part of overall corporate disclosures aiming at improving the quantum and quality of financial information available in the hands of various stakeholders of firms. The discl...Segment disclosures have become an integral part of overall corporate disclosures aiming at improving the quantum and quality of financial information available in the hands of various stakeholders of firms. The disclosures leave more valuable information in the hands of investors to be used in appraising the performance of firm as a whole and its constituents. In view of changing customer and geographic profile of software industry situated in India, the present paper evaluates the segment reporting practices of listed IT firms which are required to comply with the mandatory Indian Accounting Standard No. 17 on Segment Reporting. The analysis finds a yawning gap between the prescriptions of the standard and actual reporting practices. Firms fail miserably in providing voluntary segment information which could be of shareholders value. With the ushering in of International Financial Reporting Standard ｜IFRS] regime in India in 2011, a qualitative improvement may be seen in the days ahead.展开更多
文摘Segment disclosures have become an integral part of overall corporate disclosures aiming at improving the quantum and quality of financial information available in the hands of various stakeholders of firms. The disclosures leave more valuable information in the hands of investors to be used in appraising the performance of firm as a whole and its constituents. In view of changing customer and geographic profile of software industry situated in India, the present paper evaluates the segment reporting practices of listed IT firms which are required to comply with the mandatory Indian Accounting Standard No. 17 on Segment Reporting. The analysis finds a yawning gap between the prescriptions of the standard and actual reporting practices. Firms fail miserably in providing voluntary segment information which could be of shareholders value. With the ushering in of International Financial Reporting Standard ｜IFRS] regime in India in 2011, a qualitative improvement may be seen in the days ahead.
