e.g. personnel or marketing departments, may be excluded from the operating segment. However, the costs incurred in these units would be expected to be reported regularly to WOW Group chief operating decision maker.Secondly, information regarding non-cash revenues and cash flows of the reportable segments are not required to be disclosed in accordance with AASB 8. However, cash flow information is of great importance in assessing the financial situation (e.g. liquidity and solvency) by the CODM in WOW Group. (b)As required in AASB 8.1, an entity should “disclose information to enable users of its financial statements to evaluate the nature and financial effects of business activities”. However, information on cost of several organisational units is not required to be disclosed in the segment reporting. # Oneof the regulators rationales for not requiring information on these costs to be disclosed in the segment reporting is the fact that the compilation costs may outweigh the perceived benefits. In addition, it seems that the personnel cost information is less important for the decision makers and investors in assessing the business’ performance. Moreover, the costs incurred in the personnel and marketing departments may include commercially sensitive information. #On the other hand, based on the management approach to segment reporting, the internal segment information is already available. Thus minimal adjustments are needed before reporting to the external users. That is to say, the cost of preparing such information is not that high. Furthermore, information in term of costs may facilitate financial users for a better decision making. Therefore, disclosure requirements regarding these cost centres seem reasonable as well. (Management approach to segment reporting)Advocates of the management approach argue that the information which is reported internally is likely to be of relevance to external stakeholders in making economic decisions. Using the management approach to segment reporting, the way in which internal segments are identified and the way in which accounting variables are measured for internal reporting purpose are also used to prepare segment reporting disclosures. Senior management and the board presumably uses internal information to evaluate past performance and to allocate resources within the firm. Their knowledge of the business should be reflected in the way that they “tailor” the internal measurement systems for this purpose. Whilst allowing firms to use non-standard measures of performance hampers comparability, it could be argued that this is offset by the increased relevance of segment reporting data presented using the management approach. Foreign currency: indicators: 1. Sales price for output(customer pay and settle their accounts 9(ai)); 2.competitive forces& regulations 3. Labour and materials(pay suppliers goods and services9 (b)). 4. Financing(loan payable in USD 10a).5. currency in which receipts are kept(receipt from customer will be kept in US bank10b). other implication: 1. NYC generate income in local currency 11a 2. Only transaction with parent appears to be loan 11b 3. Cash flows from NYC do not directly affect cash flows of parents, also from other entities 11c 4.