Aggregate information in consolidated financial statements could no longer satisfy the information needs of some users especially with regards to the evaluation of different rates of risks, returns and growth in a diversified multinational corporation.
Empirical studies subsequently seem to suggest that segment information do have some benefits especially with regard to the analysis of user decision making (Nobes and Parker, 2000; Baldwin, 1984; Nichols, Tunnell and Seipal, 1995; Emmanuel, Garrod and Frost, 1989), comparisons with the predictive ability of different types of forecasts (Nobes and Parker, 2000; Kinney, 1971; Collins, 1976; Silhan, 1983; Emmanuel and Pick, 1980) and stock market reaction test (Nobes and Parker,2000; Simmonds and Collins, 1978; Mohr, 1983, 1985; Prodhan and Harris, 1989) as compared with consolidated information... displayed 300 characters
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The original International Accounting Standard (IAS) 14 was issued in Malaysia in 1985. However that standard was criticized for several reasons including the following:
• It provided only general guidance for identifying industry segments and geographical segments;
• Too many companies claimed to operate in only one business segment;
• Companies used broad, vague geographic groupings;
• Lack of consistency of primary segment information with other parts of the annual report;
• Too few items of information disclosed for each segment... displayed 300 characters
