Segment disclosures
Revenue, profit and often assets reported for each business line of a diversified company. Segments follow how management runs the business, so they help comparison but can be redrawn.
Where you will meet it
Segment disclosures appears in 2 learning outcomes on the CFA syllabus. A few of them:
- Explain where ratio analysis falls short and how segment data can be used
“Segment disclosures are the remedy, giving revenue, profit and assets by business line, though the segments are defined by management and can be redefined.”
- Explain further considerations that matter when analysing a bank
“Off-balance-sheet items such as guarantees, loan commitments and structured entities, segment disclosures, currency exposure and risk factor disclosures fill in what the ratios miss, as do Basel disclosures of capital and liquidity.”
Practise it
Practise segment disclosures until it is automatic: questions that explain every wrong option.
Take the free diagnostic →