一段analysispresents公司有价值的细节，他们知道他们的市场地理过程的可能性。这样的做法是金融家的主要分部报告中，分析师和其他许多客户。由于企业可能是非常复杂和高度异质性，财务报告提供了必要的信息，对业务进行的知识和相关的威胁（Bradbury M. E.，2009）。另外还可以对公司的技术并在其把可行的协同效应的可行。
在典型的报告分部报告表示许多动机的权宜之计（Roberts C.，1989）。最初，分部报告的最小细节不对称的公司或broadlydiversified公司行为和管理现状。其次，加强分部信息披露管理公司费用持续减少可能由投资者在跟踪管理活动。管理者认识到他们的活动trackedexpansively可能有较小的奖励，参加自己感兴趣的活动。尽量减少这些威胁带来的降价资本（Emmanuel C.，Garrod N.，1992）。Herrmann和W. B. Thomas（2000）有evaluatedinsider交易盈利预段和后段的披露和总结，分部报告内幕交易收入下降。第三、节段性披露协助企业发布监测股票和支持他们使用的runninglucrative优惠活动。
If financiers have additional reporting, better evaluations could be made and financiers will be shocked less frequently. One structure of good disclosures is reported by segments. Segmentalanalysis is anattempt by a company to classify the aggregated details into quantifiable and explicable business segments (Kinney W.R., 1971). Reportable parts are recognized into business segments that are againdivided into primary and secondary segments. For each segment reportingliabilities, segment assets, expenses, revenue and profits are mentioned (Dhaliwal D., 1997). This activity providesbetter and helpful detailsto investors for evaluating each component and determines the segments which include or void value of a company.
Numerous market participants in addition to stakeholders could be curious about the disclosure of details regarding the Group’s operating segments. Based on IASB criteria, segment reporting is essential to assist users of financial declarations to better comprehend the company’s previous performance, to access quickly the company’s risks and returns and to make informed judgments about the Group all at once. It is suggested that users of segment information such as analysts, investors, employees could be interested in the efficiency and prospects of one specific component of the company as opposed to the Group all together (Morunga. M., 2011).
Segmental analysispresents a possibility for firms to include value to the details they circulate about their marketas well as geographical procedures. Such practice is among the primaryfactors of segment reporting for financiers, analysts and many other customers. As firms could be very intricate and highly heterogeneous, financial reporting gives information necessary to knowledge of business performed and the associated threats (Bradbury M. E., 2009). It additionally makes it feasible to evaluate the technique of the firm and the feasible synergies in its LOB.
The expediency of segmental reporting over typical reporting representation is described for many motives (Roberts C., 1989). Initially, segment reporting minimizes details asymmetry present in a corporation or broadlydiversified companies amongshareholders and managers. Secondly, with enhanced segment disclosure managers lessen the possible company expenses sustained by the investors in trackingof managerial activity. Managers understanding that their activities are trackedexpansively might have lesser incentives to participate in self-interested activities. Minimizing these threats can bring about a reduced price of capital (Emmanuel C., Garrod N., 1992). Herrmann, D. and W. B. Thomas (2000) have evaluatedinsider trading earnings both in pre- segment and post-segment disclosures and wrap up that with segmental reporting insider trading revenue declines. Third, segmental disclosure assists companies to release monitoring stock and support them to make use of the benefits of runninglucrative activity.