Segment Reporting In Accounting

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Define Reportable Segment The reportable segment is the section of development, it can meets the points in the following standard: the segment part generate long-term income that accounts for more than10 percent of the total’s; the segment part has total loss and benefits for the year equal to or in the outnumber of 10 more percent of the business’s total benefits or losses; the segment's part of total assets are worth to or more10 percent of the business’s sum of assets. Segment reporting Segment reporting was recognized the International Accounting Standards Board’s short-term object to cut down the differences between the International Financial Reporting Standards . January 2005 the international accounting standards board decided the…show more content…
The first equation is: Enterprise = visible assets + intellectual capital, it means intellectual capital is the total number of all intangible assets to run enterprises. This point explain why the intellectual capital is so important - intellectual capital is an integral part of corporate capital and no intellectual capital companies can not run, another point highlighted the intangible nature of intellectual capital. Traditional accounting intangible asset reflects only a part of the intellectual capital, so trademarks, patents and other intellectual property rights. Most related to business survival intellectual capital, such as goodwill, innovation, customer relations, because the limitations of traditional accounting methods, accounting statements could not show it’s value. the virtually assets are not from the traditional financial statements., but their value will be fully reflected by…show more content…
1. Direct Intellectual Capital Methods (DICM) – identify various composition for evaluating the dollar value of the intangible assets. after this components are identified, they also can evaluate directly, one of the individually and as an aggregated coefficient. 2. Market Capitalization Methods (MCM) – find the issue between a company’s market capitalization and its stockholders’ equity as the value of its intellectual capital or virtually assets. 3. Return on Assets Methods (ROA) average pre-tax benefits of a company and divide them by the company's average tangible assets. the end is a company ROA that is then compared with the industry average. The difference is multiplied by the average tangible assets of the company to calculate the average annual income from intangible assets. Through the company's weighted average cost will be higher than the average level of income subject to capital or interest rates, can be drawn on its estimated value of intangible assets or intellectual capital of. 4. Scorecard Methods (SC) – identify various components of intangible assets or intellectual capital and indicators and indices are generated and reported in scorecard or as graphs. SC methods just like the DIC methods, the reason is not evaluate is made of the dollar value of intangible
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