FASB 131,Disclosure About Segments of an Enterprise and Related Information,has

question 19

Essay

FASB 131,Disclosure about Segments of an Enterprise and Related Information,has taken what has been referred to as a "management approach" to the definition of a segment and the allocation of costs to a segment.
Required:
a)What is meant by a management approach? How does this concept of a management approach impact the decision to disclose information?
b)How are decisions about cost allocation handled in segment disclosures?

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Definitions:

Junior High

An educational level that serves as a bridge between elementary school and high school, typically including grades 7-9.

Dropping Out

The act of leaving school, college, or university before completing the course of study.

Low-Income Households

Families or living units earning significantly less income than the average, often leading to limited access to resources and services.

High School Dropouts

Individuals who do not complete their high school education and receive a diploma.