06-30-2011, 05:09 PM
Dear,
A company could have as many businesses as mentioned by it memorandum of Association's object clause. These both could be treated as two segments of a company and their results could be reported separately under IFRS 8.
It depends upon the management intention they could form a separate company for each segment and a company for both segments. But later option could makes the reporting and software implementation difficult.
So I think it is better to have separate company for each segment if they have reasonable size to do this.
Regards,
A company could have as many businesses as mentioned by it memorandum of Association's object clause. These both could be treated as two segments of a company and their results could be reported separately under IFRS 8.
It depends upon the management intention they could form a separate company for each segment and a company for both segments. But later option could makes the reporting and software implementation difficult.
So I think it is better to have separate company for each segment if they have reasonable size to do this.
Regards,
