acct 7 - its internal organization structure are as follows...

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Ans.1 The consolidation of firms tends to disguise information needed to analyze the financial operations of diversified organization in the following ways: The sales data of individual segments are not available thus leading to non - availability of profitability of a segment on a firm to firm basis A diversified organization, if consolidated with a non - diversified organization then the financial information about the overall organization will be hampered The earning data and consequently the earning per share data of the firm will be affected if the market are not efficient to alter the financial data of the company in the market Ans.4 The advantages that the management approach requires a firm to define segments on the basis of
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Unformatted text preview: its internal organization structure are as follows: • This will lead to transparency and thus will lead to proper disclosure of organizational set up of the organization so that people can be confident above the workings of the organization • The firm will also increase its reputation my making their internal management structure public • The value of the company will increase and also many statutory obligation relating to management level disclosure will automatically get fulfilled • The management of the company will get the data of profitability and evaluate the same based on the number of employees in the a particular segment...
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This note was uploaded on 02/21/2012 for the course ACT 492 taught by Professor Ngo during the Fall '11 term at Colorado.

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