Reporting Financial Information by Segment: A Comment of the American Accounting Association on the Iasc Draft Statement of Principles

ACCOUNTING HORIZONS, Vol 10, No 1, March 1996

Posted: 28 Jun 1998

See all articles by Stephen B. Salter

Stephen B. Salter

Department of Accounting Middle Tennessee University

Edward P. Swanson

Texas A&M University - Mays Business School; Mays Business School, Texas A&M University

Abstract

This paper summarizes the views of the American Accounting Association on the IASC's initial proposed amendments to IAS 14, Reporting Financial Information by Segment. The paper finds that extant academic literature views current IAS and US rules on geographic segment disclosure, relatively ineffective. The report analyses the two proposed solutions for designing segments, the risk and return approach (advocated by IASC) and the Management approach (of the FASB). The paper finds in favor of the former. The report makes specific recommendations for tightening of thresholds for reporting and simplification of segment disclosure requirements.

JEL Classification: M41, K22

Suggested Citation

Salter, Stephen Brian and Swanson, Edward P., Reporting Financial Information by Segment: A Comment of the American Accounting Association on the Iasc Draft Statement of Principles. ACCOUNTING HORIZONS, Vol 10, No 1, March 1996. Available at SSRN: https://ssrn.com/abstract=2629

Stephen Brian Salter (Contact Author)

Department of Accounting Middle Tennessee University ( email )

Box 50 Business and Aerospace N425
1301 East Main
Murfreesboro, TN 37132
United States
(615) 898-2345 (Phone)
(615) 898-5839 (Fax)

HOME PAGE: http://www.mtsu.edu/accounting/faculty.php

Edward P. Swanson

Texas A&M University - Mays Business School ( email )

430 Wehner
College Station, TX 77843-4353
United States
979-845-8970 (Phone)
979-845-0028 (Fax)

Mays Business School, Texas A&M University ( email )

Wehner, MS 4353
College Station, TX 77843-4353
United States
979-845-5014 (Phone)
979-845-0028 (Fax)

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