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Financial Analytics: Science and Experience
 

Guidelines in segment reporting analysis

Vol. 9, Iss. 28, JULY 2016

PDF  Article PDF Version

Received: 6 July 2016

Received in revised form: 13 July 2016

Accepted: 20 July 2016

Available online: 29 July 2016

Subject Heading: FINANCIAL INSTRUMENTS

JEL Classification: D24

Pages: 46-57

Shcherbakova N.F. Voronezh State University, Voronezh, Russian Federation
shaposhnikova@econ.vsu.ru

Davnis V.V. Voronezh State University, Voronezh, Russian Federation
vdavnis@mail.ru

Importance The paper develops a methodology for analysis of segment reporting, which would contain the complex aspects such as goals, objectives, information support, indicator framework, and analytical aspect.
Objectives The paper aims to justify the possibility of applying the reporting on selected segments to assess the effectiveness of the segments, their significance in the performance of the organization.
Methods Using various indicators and parameters, we assessed the selected segment of the organization by types of manufactured products.
Results On the basis of the information on the selected segment by products, we have analyzed the revenue of this segment, its share in the total revenue, assessed the income and expenditure per one rouble of product, financial results of the segment, and its profitability. According to the results of the analysis, we evaluated the efficiency of the segment and the ranking.
Conclusions and Relevance The use of economic analysis in evaluation of segments allows an organization to monitor the activities of the various units, the release of various types of products, etc. This leads to making sound management decisions aimed at improving the performance of the organization.

Keywords: segment, reporting, parameter, economic analysis, method

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