Business Segment Reporting

A A A

DEFINITION

Giving separate accounts of a company's individual divisions, subsidiaries or other segments. In an annual report, the purpose of business segment reporting is to provide an accurate picture of a public company's performance to its shareholders. For upper management, business segment reporting is used to evaluate each segment's income, expenses, assets, liabilities and so on in order to assess profitability and riskiness.

INVESTOPEDIA EXPLAINS

A bank, for example, might use business segment reporting to separately account for its banking, credit card and financial services segments. If the bank had operations in both North America and Latin America, it might report on those separately as well.




RELATED TERMS
  1. Shareholder

    Any person, company or other institution that owns at least one share in a company. ...
  2. Business Process Outsourcing - ...

    A method of subcontracting various business-related operations to a third party. ...
  3. Subsidiary

    A company whose voting stock is more than 50% controlled by another company, ...
  4. Business Risk

    The possibility that a company will have lower than anticipated profits, or ...
  5. Profitability Ratios

    A class of financial metrics that are used to assess a business's ability to ...
  6. Wholly Owned Subsidiary

    A company whose common stock is 100% owned by another company, called the parent ...
  7. Annual Report

    1. An annual publication that public corporations must provide to shareholders ...
  8. Succession Planning

    A strategy for passing each key leadership role within a company to someone ...
  9. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding share of common ...
  10. PT (Perseroan Terbatas)

    An acronym for Perseroan Terbatas, which is Limited Liability Company in Indonesia. ...
Related Articles
  1. Financial Footnotes: Start Reading The ...
    Fundamental Analysis

    Financial Footnotes: Start Reading The ...

  2. January: Time To Read Your Mutual Fund's ...
    Mutual Funds & ETFs

    January: Time To Read Your Mutual Fund's ...

  3. Digging Deeper: The Mutual Fund Prospectus
    Mutual Funds & ETFs

    Digging Deeper: The Mutual Fund Prospectus

  4. Your Dividend Payout: Can You Count ...
    Markets

    Your Dividend Payout: Can You Count ...

  5. How The Stock Market Works
    Investing Basics

    How The Stock Market Works

  6. Top 8 Ways Companies Cook The Books
    Personal Finance

    Top 8 Ways Companies Cook The Books

  7. An Introduction To The CMA Designation
    Professionals

    An Introduction To The CMA Designation

  8. How To Invest In Corporate Spin-offs
    Chart Advisor

    How To Invest In Corporate Spin-offs

  9. Wall Street’s Glass Ceiling
    Professionals

    Wall Street’s Glass Ceiling

  10. Top 4 Most Competitive Financial Careers
    Professionals

    Top 4 Most Competitive Financial Careers

comments powered by Disqus
Hot Definitions
  1. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  2. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  3. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  4. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
  5. TIMP (acronym)

    'TIMP' is an acronym that stands for 'Turkey, Indonesia, Mexico and Philippines.' Similar to BRIC (Brazil, Russia, India and China), the acronym was coined by and investor/economist to group fast-growing emerging market economies in similar states of economic development.
  6. Pension Risk Transfer

    When a defined benefit pension provider offloads some or all of the plan’s risk – e.g.: retirement payment liabilities to former employee beneficiaries. The plan sponsor can do this by offering vested plan participants a lump-sum payment to voluntarily leave the plan, or by negotiating with an insurance company to take on the responsibility for paying benefits.
Trading Center