Ans. The financial statement users require the information about the segments of a firm due to the following reasons: For the purpose of supplementing the financial statements with information of geographical area and industry in which the firm operates in. Information about segments is required to evaluate the cycle of growth, risks involved, return on amount invested, earnings, capital requirement, etc. Many environmental factors like diversifications, acquisitions, growth of the conglomerates results in the need of segment reporting. Segment reporting helps a user to analyse in detail, the income patterns, the areas of operation and most importantly the area of concern within the firm as a whole. It helps the user to represent an effective presentation at the time of evaluating spinning off, split off of undertakings, operations, products, geographical areas of operation, etc.. Segment reporting helps the top management to implement policies for the purpose of controlling the costs and augmenting the revenues of segments which are not perfornming at par with the expectations. "If you were to have to select just one from the list, which do you feel is the most important when looking for segment information? Why