014 Segment Information
Accounting standards on disclosure of segment information
(Accounting Standard 17) and Application Guidance of
Accounting Standards on disclosure of segment information
(Application Guidance of Accounting Standards 20) will be
effective in the consolidated fiscal year and the fiscal year
starting from April 1, 2010.
The major purpose of the revision of this standards is to
introduce “Management Approach,” which is adopted by
international accounting standards. Management Approach
is a method in which company’s management makes managerial
decisions and conducts evaluations based on the information
of each unit consisting a company.
Companies will have to review method of measurement
and categorization of segment information after the application
of the standard.
“Segment information on business unit,” ”Segment information
on location,” and “Sales abroad” were asked to disclose in
the old standard, and some of them are still required disclosing
as “related information” in the new standard. Therefore,
unless method of segmentation and measurement differ,the
same method should be used for disclosure. The difference
of segment information between old and new standard is
whether or not the management decisions and evaluations
are based on the segment information (Accounting Standard 51).
