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investment. This requires assessment of the amount, timing and uncertainty of the future cash flows of T Ltd
as well as of management's stewardship of T Ltd’s resources. How management derives profit is therefore
relevant information to an investor.

Inappropriately aggregating segments reduces the usefulness of segment disclosures to investors. Ind AS 108
requires information to be disclosed that is not readily available elsewhere in the financial statements,
therefore it provides additional information which aids an investor's understanding of how the business
operates and is managed.
In T Ltd.’s case, if the segments are aggregated, then the increased profits in segment 2 will hide the

decreased profits in segment 1. However, the fact that profits have sharply declined in segment 1 would be of
interest to investors as it may suggest that future cash flows from this segment are at risk.

25. 5