Canada Interpretation of Segment

[Steve-LevelUp]

Hello All

How would you interpret "Regional or Segment Revenue and EBTIDA Analysis"?

What is defined by regional? (note that there is a separate report, 1 of 17, that asks for a geographical revenue). So, what does Regional mean if not Geographical. Note that we do not otherwise operate on a 'regional' basis.

Or, if I use Segment, then what do you think this means?

I have little to go on, and I simply need to provide my interpretation of the reporting requirements.

Thanks.

 

[bklynboy]

Segment usually refers to type of business where a company offers many different product lines and want to show the profitability/revenue each generates. Regional I have always understood to be geographic (Northwest, Southeast,etc)

 

[Steve-LevelUp]

So, if we had a suite of 10 products, Segment would mean the revenues from the hospitality segment, manufacturing, healthcare, etc. Is that what you mean?

 

[bklynboy]

Could be. Its not really product but is based on the way that management organizes within the entity for making operating decisions and assessing performance. Think of it as a part of a company that can be distinctly separated from the company as a whole based on its customers, products, or market places. If you like there is a lot of discussion on google such as:

https://www.myaccountingcourse.com/accounting-dictionary/business-segment

https://www.iasplus.com/en-us/standards/fasb/presentation/asc280

Hope this helps

 

[Fidget]

Broadly speaking, I'd take regional to mean local to a particular area or area of the same country the organisation is based in, and geographical to be outside of the that.

Segment is a business activity that can be distinguished from other business activities of the same company.

Some airlines are probably a good example. They have their internal aka domestic/regional flights, and they have their international flight operations.

For reporting, under IFRS there's IFRS 8 which has a 10% rule going on - generally a segment where its profit (or loss) makes up 10% of the overall profit/loss of the company needs to be reported separately.