A category of financial reporting that involves preparing separate information and reports about operating segments. In segment/ segmental reporting, an entity discloses (or is required to disclose in the notes to its financial statements) information about the business activities and the economic environment in which it operates, in terms of: nature, financial effect, and performance. Collectively, distinctly grouped (aggregated) or individually, these business activities are classified into operating segments.

Segmental information relates to items such as revenues and expenses for transactions carried out by an operating segment with other parts/ segments of the entity. Such financial information is discrete in nature, and can be used to assess a segment’s performance and determine the economic resources to be allocated thereto.