Ssap 25

Advantages users may gain from addition disclosure required by SSAP 25 Segmental Information and sate requirements of that standard. Segmental reports let on users: - The relative sizes of the heavenss in which the organisation operates. - The profitability of each sector - Which sectors be most heavily on inter- discussion section sales - The extent to which the free radical depends on export sales; the extent to which the group trades in politically difficult areas. This indicates the groups icon to exchange jeopardizes and frugal risks. The knowledge is designed to help users mensurate the impact of risk on the organisations results. It does, however, march on the user to square up which areas are the most risky. As with ratio analysis, segmental describe does not give us the whole story - only it points us in the perpetration of questions that may need to be asked if we want to have got sure investment decisions. Many entities go on several clas ses of agate line sector or operate in several geographical areas with diametral rates of profitability, variant opportunities for outgrowth and different degrees of risk.

It is not usually possible for the user of the financial statements of such an entity to make judgements around either the nature of the entitys different activities or their contribution to the entitys overall financial results unless the financial statements exit some segmental analysis of the information they contain. The purpose of SSAP 25 is to provide information to serve well users of financial information to make judgements a bout the nature of the entitys different act! ivities and their contributions to the entitys overall financial position. SSAP 25 therefore requires the disclosure of turnover, segment result and segment illuminate assets by class of business and by geographical segment. SSAP 25 requires entities to disclose their results for each: · course of business, and ·Geographical segment The information to be disclosed is: · derangement from...If you want to get a full essay, order it on our website: BestEssayCheap.com

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