AASB 114 - Segment Reporting - July 2004
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Objective
The objective of this Standard is to establish principles for reporting financial information by segment – information about the different types of products and services an entity produces and the different geographical areas in which it operates – to help users of financial reports:
(a) better understand the entity’s past performance;
(b) better assess the entity’s risks and returns; and
(c) make more informed judgements about the entity as a whole.
Many entities provide groups of products and services or operate in geographical areas that are subject to differing rates of profitability, opportunities for growth, future prospects, and risks. Information about an entity’s different types of products and services and its operations in different geographical areas – often called segment information – is relevant to assessing the risks and returns of a diversified or multinational entity but may not be determinable from the aggregated data. Therefore, segment information is widely regarded as necessary to meeting the needs of users of financial reports.