Segmentation Financial Reporting Analysis of PT Mitra Adiperkasa Tbk

Abstract

This study aims to examine segment reporting practices in publicly listed companies on the Indonesia Stock Exchange (IDX), namely PT Mitra Adiperkasa Tbk (MAPI). The study covers the period from 2021 to 2024 and is guided by PSAK 5 concerning operating segments in financial reporting. PSAK 5 requires the disclosure of operating segment information based on three quantitative thresholds: the 10% revenue test, the 10% profit or loss test, and the 10% asset test. This research employs a quantitative approach with a purposive sampling technique. Secondary data were obtained from the annual reports of MAPI. The findings indicate that, out of four analyzed segments, only the retail sales segment meets the PSAK 5 criteria. The remaining three segments-department store, café and restaurant, and other segments-exhibit fluctuating and generally declining values, failing to meet the PSAK 5 thresholds and therefore are not required to be disclosed as reportable segments. This study contributes to the segment reporting literature in Indonesia by incorporating materiality considerations and offering a managerial perspective on segment disclosure practices.