What is the relation between a plant and the segment?

NITIN KANSAL Jun 23, 2012 1:56 PM

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Hi,

Could you please tell me what is the relation between a plant and a segment in new G/L and how they should be mapped for IFRS?

As far as I know we have to assign them to the Profit Centers but how to map or what is the relation between plant, profit center and segmment is what I want to know?

Please explain me with an example if possible? Please replay asap.

Thanks in advance....

Regards

Nitin

Re: What is the relation between a plant and the segment?

Yogesh J Mishra Jun 25, 2012 1:16 PM (in response to NITIN KANSAL)

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Hi Nitin,

Segment is a division of a company for which you can create financial statements for external reporting, while plant can be represented as a profit center or cost center, segment will denote a line of business where as profit center will be a unit will directly generates revenue. Do correct me if I am wrong,

Hope this helps.

Regards,
Yogesh
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- Re: What is the relation between a plant and the segment?
  
  NITIN KANSAL Jun 25, 2012 1:42 PM (in response to Yogesh J Mishra)
  
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  Thanks for your reply Yogesh....
  
  We want the IFRS and GAAP reporting in New G/L for our company code. If is it so then what shall I define as segment and what shall I define as plant. We have number of plants already defined in the system.
  
  Please reply asap.
  
  Thanks in advance....
  
  Regards
  Nitin
  
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  - Re: What is the relation between a plant and the segment?
    
    NITIN KANSAL Jun 26, 2012 7:51 AM (in response to NITIN KANSAL)
    
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    Hi,
    
    Please reply on the above issue asap.
    
    Thanks in advance...
    
    Regards
    Nitin
    
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    - Re: What is the relation between a plant and the segment?
      
      Prasad Atmakuri Jun 28, 2012 9:33 AM (in response to NITIN KANSAL)
      
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      Hi Nitin
      
      As per IFRS 8 an segment is a component of entity that engages in business activities from which it may earn revenue and incur expenses , whose operating results are results are regularly reviewed by chief operating decision makers and for which discrete financial information are available
      
      Segment can be of two types as per indian AS 17 - business segment or geographical segment
      
      Please note that it cannot be possible to genrally to say what can be a segment and what cannot be a segment
      
      To decide whether a particular thing is segment or not, we have to check the quantitative test ie 75% ratio test
      
      Please use the test and decide what can be a segmnet
      
      Hope it will help you
      
      Regards
      Prasad
      
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      - Re: What is the relation between a plant and the segment?
        
        Prasad Atmakuri Jul 2, 2012 9:38 AM (in response to Prasad Atmakuri)
        
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        Hi Nitin
        
        Its my mistake its not 75% ratio test , its 10% ratio test
        
        Regards
        Prasad
        
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