USERS OF SEGMENT

REPORTING
1. Investors:
Segment reporting provides investor's
information about profitability risk and growth of
various segments of enterprise operations Investors
will be in better position to assess accurately a firm's
future earnings Investors uncertainty about
company's prospects will thus be reduced with the
help of segment reporting.

2. Employees:
Employees and trade unions are also interested
in the performance and prospects of the enterprise
from the stand point of wage negotiations and job
security. Segment reporting helps them as it helps
investors
3. Management:
Segment reporting is also helpful to the
management while taking various important
managerial decisions. Management while taking
policy decisions may need for information on
segmental performance. Lack of information on
segmental performance may lead to
misunderstanding between Management and
workers.

4. Government Agencies:
Government agencies at national and
international level in the case of multinational
companies, are becoming more concerned by the
activities of large companies and the balance; of
payments. Segment disclosures by the geographical
location seem likely to promote a better
5. Consumers:
The Interests of consumers and the General
public may also be promoted by segment
disclosures in the sense that social responsibility
in terms of the removal of price discrimination
could be encouraged by segment disclosures
regarding profits.