An Analysis of Segment Disclosures under SFAS No. 131 and SFAS No. 14

2000 ◽  
Vol 14 (3) ◽  
pp. 287-302 ◽  
Author(s):  
Don Herrmann ◽  
Wayne B. Thomas
Keyword(s):  
Decision Making ◽  
Geographic Area ◽  
Segment Reporting ◽  
Internal Organization ◽  
Country Level ◽  
Reporting Requirements ◽  
Geographic Segment Disclosures ◽  
Segment Disclosures ◽  
Number Of Firms ◽  
Segment Information

The purpose of this paper is to compare the segment reporting disclosures under SFAS No. 131 with those reported the previous year under SFAS No. 14. Under SFAS No. 131, firms are required to report segments consistent with the way in which management organizes the business internally. In addition, the accounting items disclosed for each segment are defined consistent with internal segment information used to assess segment performance. For many companies, this represents a significant change from the approach used to report segments under SFAS No. 14. Under SFAS No. 14, firms were required to disclose segment information by both line-of-business and geographic area with no specific link to the internal organization of the company or the measurements that were used for internal decision making. As a result, many complained that the resulting disclosures were highly aggregated and of limited use for decision-making purposes. We find that the change in segment reporting requirements under SFAS No. 131 has made a relatively significant impact on the disclosure of segment information. Over two-thirds of the sample firms have redefined their primary operating segments upon adopting SFAS No. 131. There has also been an increase in the number of firms providing segment disclosures and companies are disclosing more items for each operating segment. For enterprise-wide disclosures, the proportion of country-level geographic segment disclosures has increased, while the proportion of broader geographic area segment disclosures has decreased. However, the number of firms reporting earnings by geographic area has declined greatly as this item is no longer required to be disclosed for firms reporting on a basis other than geographic area.

Segment Disclosures under SFAS No. 131: Has Business Segment Reporting Improved?

2000 ◽  
Vol 14 (3) ◽  
pp. 259-285 ◽  
Author(s):  
Donna L. Street ◽  
Nancy B. Nichols ◽  
Sidney J. Gray
Keyword(s):  
Annual Report ◽  
Business Enterprise ◽  
Segment Reporting ◽  
Additional Segment ◽  
Segment Disclosures ◽  
The Impact ◽  
Segment Information

In response to user concerns regarding segment reporting, the FASB issued SFAS No. 131, Reporting Disaggregated Information about a Business Enterprise, in 1997. SFAS No. 131 became effective for fiscal years beginning on or after January 1, 1998. This research examines the segment disclosures of U.S. Global 1000 companies for both 1997 and 1998 to ascertain the impact and effectiveness of SFAS No. 131 in practice. Specifically, this research considers whether the new requirements have resulted in (1) a greater number of line-of-business (LOB) segments for some enterprises, particularly those who claimed to operate in one LOB under SFAS No. 14, (2) enterprises reporting more items of information about each segment, and (3) improved consistency of segment information with other parts of the annual report. The research also addresses whether restructuring by some firms might limit the provision of additional segment information under SFAS No. 131. The findings indicate significant changes from reporting under SFAS No. 14 including increased consistency with information in the MD&A and other annual report disclosures. However, the practices of a significant minority of companies continue to give some cause for concern.

scholarly journals Nursing Home Staff’s Perceptions of Healthcare Decision Making for Unbefriended Residents

2020 ◽  
Vol 4 (Supplement_1) ◽  
pp. 384-384
Author(s):  
Hyejin Kim ◽  
Molly Perkins ◽  
Thaddeus Pope ◽  
Patricia Comer ◽  
Mi-Kyung Song
Keyword(s):  
Decision Making ◽  
Geographic Area ◽  
Care Physician ◽  
Healthcare Decision ◽  
Do Not Resuscitate ◽  
Best Interest ◽  
Care Plans ◽  
Course Of Action ◽  
Healthcare Decision Making ◽  
Facility Level

Abstract ‘Unbefriended’ adults are those who lack decision-making capacity and have no surrogates or advance care plans. Little data exist on nursing homes (NHs)’ healthcare decision-making practices for unbefriended residents. This study aimed to describe NH staff’s perceptions of healthcare decision making on behalf of unbefriended residents. Sixty-six staff including administrators, physicians, nurses, and social workers from three NHs in one geographic area of Georgia, USA participated in a 31-item survey. Their responses were analyzed using descriptive statistics and conventional content analysis. Of 66 participants, eleven had been involved in healthcare decision-making for unbefriended residents. The most common decision was do-not-resuscitate orders. Decisions primarily were made by relying on the resident’s primary care physician and/or discussing within a facility interdisciplinary team. Key considerations in the decision-making process included “evidence that the resident would not have wanted further treatment” and the perception that “further treatment would not be in the resident’s best interest”. Compared with decision making for residents with surrogates, participants perceived decision making for unbefriended residents to be equally-more difficult. Key barriers to making decisions included uncertainty regarding what the resident would have wanted in the given situation and concerns regarding the ethically and legally right course of action. Facilitators (reported by 52 participants) included some information/knowledge about the resident, an understanding regarding decision-making-related law/policy, and facility-level support. The findings highlight the complexity and difficulty of healthcare decision making for unbefriended residents and suggest more discussions among all key stakeholders to develop practical strategies to support decision-making practices in NHs.

Does Aid Fragmentation Affects Growth: The Case of Nepal

2021 ◽  
pp. 097215092110115
Author(s):  
Kishor Sharma ◽  
Badri Bhattarai
Keyword(s):  
Cold War ◽  
Soviet Union ◽  
Former Soviet Union ◽  
Empirical Results ◽  
Country Level ◽  
Reporting Requirements ◽  
The Usa ◽  
Strategic Position ◽  
The Cold War ◽  
India And China

Nepal’s strategic position and open border with India and China have attracted unusually high attention, particularly during the Cold War era, not only from these two large neighbours but also from European countries, the USA and the former Soviet Union. However, despite decades of aid inflows, Nepal remains one of the poorest countries. While debate over aid–growth nexus remains unsettled, our empirical results do suggest that aid fragmentation is detrimental to growth, perhaps due to increased administrative burden to manage a large number of small projects and meet reporting requirements of the donor community. While we find that aid is good for growth, attracting uncoordinated and fragmented aid without the need for assessment can, in fact, do more harm than good. These findings point to the importance of coordinated aid approach not only at the country level but also among the donor community.

Sew or purchase? Home sewer consumer decision process

2018 ◽  
Vol 22 (2) ◽  
pp. 176-188
Author(s):  
Addie Martindale ◽  
Ellen McKinney
Keyword(s):  
Decision Making ◽  
Geographic Area ◽  
Decision Making Process ◽  
Consumer Decision Making ◽  
Consumer Decision ◽  
Content Type ◽  
Female Consumers ◽  
The North ◽  
Starting Point ◽  
Consumer Dissatisfaction

Purpose The purpose of this paper is to explore garment consumption decision processes of female consumers when they have the option to sew or purchase their clothing. Design/methodology/approach This research study presents a segment of the findings from a larger qualitative grounded theory study on women who choose to sew clothing for themselves (Martindale, 2017). This research analyzed the interview data pertaining to the unique sew or purchase decision-making process in which these consumers undertake as well as the related control over ready-to-wear consumption that sewing provides them. Findings The ability to sew resulted in a unique consumer decision-making process in regard to the clothing purchases due to the control it provided them over their ready-to-wear consumption. The women developed factors that they used to make the decision to sew or purchase. Over all the ability to sew provided them the option to sew or purchase clothing, allowing the women more control over their clothing selection specifically in regard to the garments body fit. Research limitations/implications This study was limited to English-speaking women living in the North America. The qualitative data collected are specific to this sample which cannot be generalized to all female home sewers. Research involving a larger population of women from a larger geographic area is needed. Practical implications The newly developed sew or purchase model provides an understanding of the control that having the option to sew or purchase provides female consumers. The findings offer apparel industry professionals a new perspective on ready-to-wear consumer dissatisfaction. The investment that is made when a garment is sewn instead of purchased has the potential to increase wardrobe sustainability as the consumer experiences more attachment to the clothing they have made. The model serves a starting point for further exploration into other craft-related consumer decision behaviors. Originality/value Purchasing decisions of this nature have yet to be considered in published research. Exploring these women’s decisions who operate outside of typical consumer culture and developing a model for this consumer behavior explains a phenomenon not yet addressed by existing consumer consumption research.

Managers' Motives to Withhold Segment Disclosures and the Effect of SFAS No. 131 on Analysts' Information Environment

2005 ◽  
Vol 80 (3) ◽  
pp. 751-772 ◽  
Author(s):  
Christine A. Botosan ◽  
Mary Stanford
Keyword(s):  
Poor Performance ◽  
Information Environment ◽  
Financial Accounting ◽  
Weak Evidence ◽  
Public Data ◽  
Segment Disclosure ◽  
Segment Disclosures ◽  
The Cost ◽  
The Impact ◽  
Segment Information

Using retroactive disclosures required by Statement of Financial Accounting Standards (SFAS) No. 131, we examine managers' incentives for withholding segment information under SFAS No. 14 and the impact of SFAS No. 131 on analysts' information environment for a sample of firms that previously reported as single-segment firms and initiated segment disclosure with SFAS No. 131. We examine this set of firms because they likely had the strongest incentives to withhold segment information and analysts potentially had the most to gain when these firms were forced to begin providing segment disclosures under SFAS No. 131. We find that these firms used the latitude in SFAS No. 14 to hide profitable segments operating in less competitive industries than their primary operations. However, we find no evidence to suggest that these firms used the latitude in SFAS No. 14 to mask poor performance. In contrast, our results suggest that by withholding segment information, these firms allowed themselves to appear as if they were underperforming their competition when this was not the case. Thus, their decision to withhold segment disclosures under SFAS No. 14 appears to be motivated by a desire to protect profits in less competitive industries. In terms of the impact of SFAS No. 131 on analysts' information environment, our evidence suggests that SFAS No. 131 increased analysts' reliance on public data, but we provide weak evidence to suggest that this shift may have come at the cost of a marginal increase in overall uncertainty and squared error in the mean forecast.

scholarly journals External Segment Reporting in the Republic of Serbia

2016 ◽  
Vol 54 (1) ◽  
pp. 155-176 ◽  
Author(s):  
Vladimir Obradović ◽  
Nemanja Karapavlović
Keyword(s):  
Financial Institutions ◽  
Financial Reporting ◽  
Financial Statements ◽  
Potential Usefulness ◽  
Statistical Techniques ◽  
High Quality ◽  
Segment Reporting ◽  
Ifrs 8 ◽  
The Republic ◽  
Segment Information

AbstractThe purpose of the research in this paper is to examine the regulation and practices of external segment reporting in the Republic of Serbia. The importance of research stems from a great potential usefulness of segment information for investors and creditors. The analysis of regulation suggests that the Republic of Serbia has high-quality and internationally recognized basis of external segment reporting – IFRS 8. However, there is a room for improvement of IFRS 8. The analysis of practices, conducted on a sample of 500 companies, shows that companies in the Republic of Serbia, in general, do not attach great importance to the disclosure of segment information in financial statements. The practices are quite miscellaneous, which is a consequence of the flexibility of IFRS 8, but also an incomplete compliance with IFRS 8. By applying statistical techniques we have examined whether the practices of external segment reporting are related to characteristics of companies, which makes the originality of the paper. We have found that financial institutions disclose more extensive quantitative segment information in relation to other companies in the Republic of Serbia, and that companies with higher assets disclose more extensive segment information. The research indicates that there is a significant room for improving the practices of external segment reporting in the Republic of Serbia. The research results may be useful for regulators of financial reporting and preparers and auditors of financial statements.

scholarly journals Too Many Products: Decentralized Decision Making in Multinational Firms

2011 ◽  
Vol 3 (1) ◽  
pp. 280-306 ◽  
Author(s):  
Catherine Thomas
Keyword(s):  
Decision Making ◽  
Western Europe ◽  
Multinational Firms ◽  
Consumer Preferences ◽  
Laundry Detergent ◽  
Market Outcomes ◽  
Firm Level ◽  
Product Range ◽  
Country Level ◽  
Decentralized Decision Making

I analyze country-level product ranges offered by multinational laundry detergent manufacturers in Western Europe. Observed product range variation across countries exceeds the optimal firm-level response to differences in consumer preferences and retail environments. Counterfactual analysis reveals that increased product range standardization would reduce firm costs and increase profits. These findings are consistent with theory models of local agency, where decentralized decision making can be the constrained optimal organizational form despite the resulting lack of coordination across divisions. My analysis suggests that organizational structure affects product market outcomes and firm performance. (JEL D23, F23, L21, L25, L65)

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