Question

i will do a report about a company , how to discuss each operating segment has contributed to the financial performance and financial position (Under the AASB 8), and what supporting calculations i need to do .I don't need an exact answer, I just want to know how to analyze it, um, could you give me a direction for thinking

Answer 1

Financial performance and position has to be interpreted in such way that it gives a full diagnosis of profitability and financial soundness of the business for which various financial ratios can be put to use like working capital analysis,profitability analysis,activity analysis etc. Segment wise analysis will be a great choice to show the role played by different operation sections of the company.Seperate calculations of profit and loss account for seperate segments of the company can be shown to get a conclusion on the performance of different operating segments.Way of Accounting followed in case of branch and departments accounting can also be used.