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What two disclosure guidelines for operating segment information are designed to ensure the consistency of data...

What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?

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Answer #1

Operating segments are disclosed as reportable segments after some tests.

1. so if in the previous year the operating segment was disclosed as reportable segment but in current year it does not pass the test to disclose it as reportable segment then even after not passing the test , the segment would be shown as reportable segment if the management of the organisation feels that this is still significant.

hence it would be disclosed to be comparative with previous year.

2. Opposite to what was the case in point number 1, if the segment was not reportable is previous year but becomes reportable in current year, then the prior year would be restated to show the segment comparative with current year.

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