1 The disclosure in the annual accounts and report of certain results of major business and geographic segments of a diversified group of companies. Segmental reporting is required by company law, the stock exchange, and Statement of Standard Accounting Practice (SSAP) 25. The argument for segmental reporting is that the disclosure of profitability, risk, and growth prospects for individual segments of a business will be of use to investors. Under SSAP 25 companies should disclose, for both business segments and geographic segments, turnover, profit or loss before tax, minority interests, extraordinary items, and net assets.
2 The approach in management accounting in which the financial and quantitative performance of each definitive part of an organization is reported to both the management of the business segment and of the organization as a whole.