Segments based on the structure of an undertaking’s internal organisation have other significant advantages:

(i) An ability to see an undertaking ‘through the eyes of management’ enhances a user's ability to predict actions or reactions of management, which can significantly affect the undertaking’s prospects for future cash flows.

(ii) As information about those segments is generated for management's use, the incremental cost of providing information for external reporting should be relatively low. aa

(iii) Practice has demonstrated that the term ‘industry’ is subjective. Segments based on an existing internal structure should be less subjective.

(iv) Earnings per share (EPS) calculations can be compared between segments.

(a) (i) and (ii).

(b) (i) to (iii).

(c) (i) to (iv).