AS 17

Accounting Standards in India – Simple Explanation – Segment reporting (AS 17) Indian accounting standards in India is very useful for Indian Accountants , chartered accountants , commerce professors , company secretaries and cost and work accountants , So , it is included in the syllabus of B.Com , ICAI , C.S. , M.Com. , MBA, and UGC tests. Deep understanding of accounting standards can help you taking good decisions in the field of accounting and finance. But problem is that way of explaining accounting standards in text books are so boring and some tough explanation which is not needed. I am trying to explain it in very interesting and simple way, so that main aim of making accounting standard will be fulfill because without understanding, there will no benefit to write it in detail. After getting some queries from students in which they have liked my way to explain Indian accounting standards, I have already written 1 to 16 standards, after increasing the curiosity to know rest accounting standards from 17 to 32 in accounting education, I am starting again to write simple explanation of accounting standards in India and today, you can study Segment reporting today. It is seventeenth accounting standard. Segment reporting is very important accounting standard which is made by ICAI. In this standard ICAI has made simple rules relating to showing financial statement of each segment. First of all you should understand segment. Segment is smallest part of cost center in which attribute the cost of product. Moreover we can define that when we made any product, it is processed from different parts so every division is also segment or when we divide whole enterprise geographically then every part of enterprise is also called segment. Now you can understand segment reporting. It is the duty of board of director to disclose segment revenue and financial report because interested parties like customers and investors can get more idea about the performance of company in each division or segment of whole business. It may possible that whole performance of company is good but most divisions or segment are performing bad , then customers and investors can make better planning for taking decisions .