Final answer:
Companies must report information on operational segments, products and services, geographic areas, and major customers, to provide a clear view of a company's performance and future prospects.
Step-by-step explanation:
With respect to segment reporting, enterprises are generally required to report comprehensive information that aids in the understanding of a company's performance and prospects for future net cash inflows. According to financial reporting standards, a company must report information about the following four key items:
- Operational segments
- Products and services
- Geographic areas
- Major customers
Each of these components contributes to establishing a reporting structure that relays factual information about the who, what, when, where, why, and how questions that stakeholders may have regarding the different parts of a business. This information is essential for investors and creditors to make informed decisions.