Task 1 chapter 7

1. A multinational company, M&M plc, classifies its business into eight business segments (segments A-H). A summary of the business activities of each segment for 2020 is shown in the table below:

	Total segment revenues (inclusive of inter-segment revenues)	Segment result Profit/(Loss)	Identifiable segment assets
	OMR,000	OMR,000	OMR,000
A	268,800	126,720	565,760
B	89,600	(29,568)	275,456
C	340,480	105,600	632,320
D	179,200	84,480	579,072
E	111,104	29,568	232,960
F	100,352	(42,240)	219,648
G	21,504	27,456	93,184
H	17,920	(6,336)	83,200
Total	1,128,960	295,680	2,681,600
Inter-co elimination	80,640	21,120	99,840
Consolidated total	1,048,320	274,560	2,581,760

Additional information: Segment As total segment revenue included OMR37,400,000 of inter-segment sales, and segments D and Fs total segment revenues included OMR28,240,000 and OMR15,000,000 of inter-segment sales, respectively.

Required

1. Briefly discuss the objectives of segmental reporting adopted by listed companies in annual reports. (3 marks)

answer question with 200 words