Segment Reporting In China-related Issues Discussed

With the trend of business merger and economic globalization, business operations are no more confined to a certain industry or area. More and more businesses have started multi-operations so as to withstand risks and win market share. The rapid developments of information technology and communication methods make possible the trans-regional and trans-national operations, which are undoubtedly a global trend. Nowadays, many countries have issued standards and systems to regulate the disclosing of segment information. FASB and IASC have thoroughly studied in this field. Segment report is new to our country, and the research on segment report is still under exploration.Backed by standard system analysis, the thesis starts with and elaborates the economic background of the emergence of segment report. Afterwards, looking back the history of segment report standard home and abroad, the thesis discusses the weak points in the formulation of its standard against domestic situations and comes up with some suggestions. There are four chapters in this thesis:Part 1: A brief account of segment report. This part involves two points. The first one is to probe to the relationship of segment report and other individual financial report; the second one is to analyze generation and development of segment report; In order to achieve a concrete and dynamic acknowledgement of its emergence.Part 2: this part referred to the recognizing of segment, the classifying of segment, the identification of reportable segment, the required disclosures and the disclosing format and periods.Part 3: Starting with the history and global trend of segment report, this part presents the evolution of segment report standards in various societies and the contributions made by institutions concerned during this evolution, looking into the improvement made in this process and differences among various standards. The disclosure of segment report in China is transferring from indulgence to standardization. Thereafter the thesis comes to the conclusion that China's disclosure of segment report has been on the way of integrating into the international practice.Part 4: Segment report is new to our country. In my thesis, I appraise both the positive effects and deficiencies of current regulations in our country. Furthermore, I put forward a couple of initial suggestion for improving segment report by considering our reality and absorbing worldwide research results. I expect it can be helpful to the theoretical research and practical application of segment report in China.