Segment Reporting

Edgar Löw () and Reinhard Heyd ()
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Edgar Löw: Frankfurt School of Finance & Management

Chapter Chapter 7 in The Audit Failures of the Wirecard Scandal, 2024, pp 99-107 from Springer

Abstract: Abstract While the balance sheet and the income statement provide an overall overview of the assets and earnings situation, the business model has to be explained in the application of the so-called management approach in the segment reporting. In this sense, segment reporting has the task of presenting the company to the reader of the financial statements as it is controlled across individual business areas (segments) by top management. In full knowledge of the actual business model, the group segment reporting presented to the reader of the financial statements was absolutely incomplete and materially incorrect which we will demonstrate in detail. Wirecard massively violated the relevant accounting standard. The auditor should have objected to this. Instead, the addressees of the consolidated financial statements were deliberately misled—without any reaction from the auditor, which is a fundamental breach of his professional duties.

Keywords: Breach; Geographical segment; Management approach; Operating segment; Segment; Segment reporting; TPA business; Violation (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/978-3-031-59854-8_7

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