Accounting Standard 17 outlines requirements for segment reporting in financial statements. It requires companies to report financial information for different business segments and geographical segments. Applicable to listed companies and unlisted companies with annual turnover over Rs. 50 crores from April 2001. A business segment is a distinguishable component engaged in providing an individual product or service subject to different risks and returns. A geographical segment provides products/services in a particular economic environment subject to different risks and returns. Reportable segments meet certain thresholds for revenue, profit/loss, or assets. At least 75% of total revenue should be included in reportable segments. Comparative segment data is required. Primary reporting format is by business segment or geographical segment depending on how risks and returns are

1. ACCOUNTING STANDARD - 17 SEGMENT REPORTING J.P., KAPUR & UBERAI

11. Primary and Secondary Segment Reporting Formats J.P., KAPUR & UBERAI If RISKS AND RETURNS are affected by Differences in the Operation in different products and services countries or geographical areas BUSINESS SEGMENT GEOGRAPHICAL SEGMENT

12. Matrix presentation J.P., KAPUR & UBERAI If the risk & return of an enterprise are equally effected by differences in the products and services it produces and by differences in the geographical areas in which it operates, then the enterprise should use BUSINESS SEGMENTS as its PRIMARY SEGMENT reporting format and GEOGRAPHICAL SEGMENTS as its SECONDARY REPORTING format & full segment disclosures is given on each basis

13. DISCLOSURES J.P., KAPUR & UBERAI a. Segment revenue from sales to external customers b. Segment revenue from transactions with other segments c. Segment result d. Total carrying amount of segment assets; e. Total amount of segment liabilities; f. Additions to tangible and intangible fixed assets; g. Depreciation and amortisation for the period h. Significant other non-cash expenses