An entity operates in the gas industry and has four different productive processes within the production cycle. It is essentially a vertically integrated business. The entity proposes to disclose segmental information regarding each of the four operations.
Can the entity disclose separately as business segments the four operations within the production cycle
(a) No, it must show a single segment covering all the various operations.
(b) IAS 14 says that it is compulsory to show each different operation separately.
(c) IAS 14 encourages voluntary disclosure of the segments, and it is considered to be good practice.
(d) The entity should group together various operations and show exploration, production, and chemicals as one segment and retailing as another segment.