The last few decades have witnessed massive expansion, both through external mergers and internal reconstructions. This has resulted in diversification which seems to be the mantra for sustenance. The period has seen many MNCs spread their arms into various geographical areas and product lines. To enable financial information help decision-making, it would be meaningful only if both, consolidated and segmental information are provided.

The business world today is bound by so many strategic decisions that it has become a common trend that decisions are taken just for short-term benefits. The investors, as external users, rely on the company reports to make decisions. These reports show a consolidated status of the whole business and not division-wise. If the investor gets a tinkle about a non-performing division, he may hesitate to invest in the company itself. But the companies, till the introduction of Accounting Standard 17 (AS-17), did not allow this tinkle in the investor's mind by masking the individual information through presentation of consolidated statements. The investors rarely get to know about the individual products/divisions and their performance. The shareholders need to know whether the product lines into which the company is diversifying, contribute to the bottom line of the company, enabling them to make a wise investment decision.

The segmental reporting information is the place where, an investor can find the performance of the company's individual divisions and judge the impact of management decisions. It is a decisive information while evaluating and analyzing demergers.

massive expansion, external mergers, internal reconstructions, diversification, mantra for sustenance, MNCs, geographical areas, product lines, financial information, decision-making, segmental information, business world, strategic decisions, common trend, short-term benefits, investors, external users, company reports, non-performing division, Accounting Standard 17, AS-17, consolidated statements.