The Hindu Business Line : Why augment the figment of segment?

IN THE disambiguation page for `segment', Wikipedia gives the meaning for the word in various contexts, such as a line or circle segment in geometry; a market segment as defined in marketing; a memory segment in computer architecture; an image segment in computer vision; and an orange segment in horticulture. I wish accountants would report to The Free Encyclopedia that the Institute of Chartered Accountants of India has a whole standard for the purpose — AS-17 on `segment reporting'.

For starters, this accounting standard is on how financial reporting should show information about the different types of products and services, and also the different geographic areas where the enterprise operates. And AS-17 defines not one, but three, segments — business, geographical, and reportable.

Segment means any one of the parts or sections into which an object or group is divided, as Encarta defines. The word is from "Latin segmentum meaning `a strip or piece cut off,' originally a geometric term, from secare `to cut' (see section)," informs Online Etymology Dictionary. If you stray into some medical dictionary, as I did by clicking www.mercksource.com, you would see many different segments — such as "cranial segments: three segments into which the bones of the cranium may be divided; they are distinguished as the occipital, the parietal, and the frontal."

Segment is a small stone tool made on a blade, used as a projectile tip or as part of a cutting tool, one learns from Archaeology Wordsmith. "Segments occur in some sub-Saharan African Howiesons Poor and Later Stone Age assemblages and are widespread in North Africa." However, I suspect `segments' occur closer home too, with some archaeological link in IP Marg.

As if to corroborate, the CA Institute has been digging up with verve its ASI — not the Archaeological Survey of India but `accounting standard interpretation' — on segment.

ASI-20 was issued last year, and the `issue' it dealt with was "Whether an enterprise, which has neither more than one business segment nor more than one geographical segment, is required to disclose segment information as per AS-17."

Thus, enterprises that had only one product or service, or operated only in one place, found it difficult to report on segments, as AS-17 insisted. Wonder if any enterprising accountant got his boss to launch an extra product or set up shop in a new location, if only to comply with AS-17!

To avert such misinterpretation, ASI-20 said that segment information is not required to be disclosed "if by applying the definitions of `business segment' and `geographical segment' contained in AS-17, it is concluded that there is neither more than one business segment nor more than one geographical segment". Please note that this ASI replaced the `General Clarification (GC) 11/2002, issued in October 2002'.

Now comes a proposal to revise ASI-20, in the form of an exposure draft (ED). A `marked copy' of the ED indicates the changes by underlining the additions. What's new, accordingly, is that an enterprise with no segment, as ASI-20 described, should disclose by way of a note the fact that there is only one `business segment' and `geographical segment'. Why? Because such a disclosure "is useful for the users of the financial statements while making a comparison among various enterprises."

If you're puzzled that one segment sounds as oxymoronic as `chief executive worker' or `full piece', you may not be alone in such enlightened confusion! George Steiner said, "Language can only deal meaningfully with a special, restricted segment of reality. The rest, and it is presumably the much larger part, is silence." A relevant thought for the interpreters.

Auditor and XXX

A question on www.straightdope.com reads: "What is the etymology of the `XXX' symbol used to represent spirituous beverages in a host of cheesy movies and books? And why also the use of the same symbol to represent sexually explicit material?" The answer: "X on beer casks formerly indicated beer which had paid the old 10s. duty, and hence came to mean beer of a given quality. Two or three crosses are mere trademarks intended to convey an impression of its extra strength."

Now, the latest issue of The Chartered Accountant has an `invitation to comment on the ED of Auditing and Assurance Standard XXX' on `the auditor's procedures in response to assessed risks.' Risky abbreviation, I'm afraid, because XXX stands for pornography; and in SMS-speak or text message, http://en.wikipedia.org explains it as `kiss kiss kiss'— a commonly used goodbye salutation.

AccountSpeak@TheHindu.co.in

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