Segment reporting and management MIS from the same numbers
The segment note reports what management reviews. If the MIS and the note are built separately they will disagree. How to keep one set of numbers.
Topic
Disclosures
Related parties, operating segments, and the notes where one figure has to agree with the statements, the segment note and the investor deck.
A disclosure is where a number meets its explanation, and where the two most often fail to agree. The face of the statements is arithmetic; the note is a claim about what the arithmetic means, and it has to hold against the segment note, the related party list and whatever was said publicly last quarter.
These posts cover the disclosures that draw questions: who counts as a related party and what has to be said about them, how operating segments are decided and presented, and how a management measure stays the same number everywhere it appears.
One of several topics, each gathering the posts on one change.
2 posts on this
Operating segments: the questions regulators keep asking
Who is the chief operating decision maker, why one segment, why these aggregations: the questions a segment note has to answer before it is challenged.