Segment Reporting Analysis in PSAK Perspective, Profitability: Literature Study of Various Previous Researches

Abstract

This study aims to identify and analyze the risks and benefits of segment reporting for companies and stakeholders. By adopting a qualitative approach through a literature review, this research examines various sources such as accounting standards (PSAK 5 which was later revised to PSAK 108), books, and journal articles that discuss segment reporting. The results show that segment reporting provides significant benefits in terms of information transparency, improved investment analysis capabilities, access to financing, and ease of monitoring by the government. The study also found that the adoption of PSAK 5 (revised 2009) has increased the percentage of segment information elements disclosed. This study contributes to a deeper understanding of the dynamics of segment reporting in the context of Indonesian accounting standards and its implications for business practices.