on 06-23-2012 12:56 PM
Hi,
Could you please tell me what is the relation between a plant and a segment in new G/L and how they should be mapped for IFRS?
As far as I know we have to assign them to the Profit Centers but how to map or what is the relation between plant, profit center and segmment is what I want to know?
Please explain me with an example if possible? Please replay asap.
Thanks in advance....
Regards
Nitin
Hi Nitin,
Segment is a division of a company for which you can create financial statements for external reporting, while plant can be represented as a profit center or cost center, segment will denote a line of business where as profit center will be a unit will directly generates revenue. Do correct me if I am wrong,
Hope this helps.
Regards,
Yogesh
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Hi Nitin
As per IFRS 8 an segment is a component of entity that engages in business activities from which it may earn revenue and incur expenses , whose operating results are results are regularly reviewed by chief operating decision makers and for which discrete financial information are available
Segment can be of two types as per indian AS 17 - business segment or geographical segment
Please note that it cannot be possible to genrally to say what can be a segment and what cannot be a segment
To decide whether a particular thing is segment or not, we have to check the quantitative test ie 75% ratio test
Please use the test and decide what can be a segmnet
Hope it will help you
Regards
Prasad
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