A Business Segment:
enterprise that is engaged in providing an individual product or service or a group of
related products or services and that is subject to risks and returns that are different from
those of other business segments. Factors that should be considered in determining
whether products or services are related include:(a) the nature of the products or services;
(b) the nature of the production processes;
(c) the type or class of customers for the products or services;
(d) the methods used to distribute the products or provide the services and
(e) if applicable, the nature of the regulatory environment, for example, banking,
insurance or public utilities.
A geographical segment:
enterprise that is engaged in providing product or services within a particular economic
environment and that is subject to risks and returns that are different from those of
components operating in other economic environments. Factors that should be
considered in identifying geographical segments include:
(a) similarity of economic and political conditions;
(b) relationships between operations in different geographical areas;
(c) proximity of operations;
(d) special risks associated with operations in a particular area;
(e) exchange control regulations; and
(f) the underlying currency risks.A geographical segment is a distinguishable component of anA business segment is a distinguishable component of an
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