You work as the financial controller for Dexter, a publicly listed company that prepares consolidated financial statements in compliance with International Financial Reporting Standards (IFRS). The Dexter group's chief executive officer (CEO) has evaluated the draft consolidated financial statements of the Dexter group and a number of significant subsidiary companies for the fiscal year ended March 31, 2019. Although neither of the subsidiaries are publicly listed, they all generate financial statements in compliance with IFRS. The CEO has emailed you with the following questions: Question One I have discovered that the disclosures in the consolidated financial statements about operating segments appear to be centered on the geographical location of the group's customers. I work as a non-executive director for another large listed corporation, and the segment disclosures in their consolidated financial statements are determined on the types of goods sold. Furthermore, several of our larger subsidiaries have clients in more than one geographic region, yet they provide no segment disclosures in their individual financial statements. I would also like to have segment information in the individual subsidiary accounts. Given that all of these financial statements were prepared in accordance with IFRS, I am confused by these inconsistencies. Please explain why these apparent inconsistencies exist.
You work as the financial controller for Dexter, a publicly listed company that prepares consolidated financial statements in compliance with International Financial Reporting Standards (IFRS). The Dexter group's chief executive officer (CEO) has evaluated the draft consolidated financial statements of the Dexter group and a number of significant subsidiary companies for the fiscal year ended March 31, 2019. Although neither of the subsidiaries are publicly listed, they all generate financial statements in compliance with IFRS. The CEO has emailed you with the following questions:
Question One
I have discovered that the disclosures in the consolidated financial statements about operating segments appear to be centered on the geographical location of the group's customers. I work as a non-executive director for another large listed corporation, and the segment disclosures in their consolidated financial statements are determined on the types of goods sold. Furthermore, several of our larger subsidiaries have clients in more than one geographic region, yet they provide no segment disclosures in their individual financial statements. I would also like to have segment information in the individual subsidiary accounts. Given that all of these financial statements were prepared in accordance with IFRS, I am confused by these inconsistencies. Please explain why these apparent inconsistencies exist.
Step by step
Solved in 3 steps
