Tina Bailey, a student of intermediate accounting, was heard to remark after a class discussion on segment reporting, “All this is very confusing to me. First we are told that there is merit in presenting the consolidated results, and now we are told that it is better to show segmental results. I wish they would make up their minds.” Evaluate this comment.

The reporting of a company's operating sections within the disclosure with its financial statements is known as segment reporting. Segment reporting is mandatory for publicly traded entities, but not for privately traded compounds.

It should be highlighted that the need to present actual results when a corporation discloses segmental data does not negate the need. People sometimes get confused because they understand that the business of segmentation reporting involves that a substantive claim should not be disclosed.

It appears that both types of data need to be provided. Consolidated information generally refers to financial position and profit, while segment information refers to the precise facts that make up the overall results.