Page 124 - DCOM409_CONTEMPORARY_ACCOUNTING

Unit 9: Issues and Recent Trends in Corporate Reporting

Companies with multiple products or services and those with area of operation extending Notes
beyond the boundaries of the country would have to present separate financial report for
each of the activities and for each territory.
Each segmental report will contain information as to the sales, costs, assets and liabilities
pertaining to that segment.

Social reporting is reporting on those activities of an organisation that have an impact on
society at large and are not necessarily represented by its traditional financial report.

Transfer prices are the amounts charged by one segment of an organization for a product
or service that it supplies to another segment of the same organization.
Corporate governance denotes of voluntary ethical code of business and management of
companies. It aims to maximize the effectiveness and accountability of the brand of directors.
Human Resource Accounting (HRA) denotes just this process of quantification/
measurement of human resources.

9.7 Keywords

Corporate Governance: Corporate governance denotes of voluntary ethical code of business
and management of companies. It aims to maximize the effectiveness and accountability of the
brand of directors.
Human Resource Accounting (HRA): Human Resource Accounting (HRA) denotes just this process
of quantification/measurement of human resources.

Social Reporting: Social reporting is reporting on those activities of an organisation that have an
impact on society at large and are not necessarily represented by its traditional financial report.
Transfer Prices: Transfer prices are the amounts charged by one segment of an organization for
a product or service that it supplies to another segment of the same organization.

9.8 Review Questions

1. Indian corporates, listed or proposed to be listed on the stock exchanges has to adopt
segmental reporting. Discuss.
2. Identify the key basis of segmentation.
3. Why social accounting is getting popularity in recent years?
4. Why do transfer-pricing systems exist?

5. What do you mean by corporate governance?
6. In knowledge-driven economies it is imperative that the humans be recognised as an
integral part of the total worth of an organisation. Why?

Answers: Self Assessment

1. Consolidated
2. AS17
3. costs
4. product lines

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