Ind AS 108, Operating Segments, aims to ensure that an entity provides financial statement users with meaningful information to evaluate the nature and financial effects of the business activities it undertakes. This standard focuses on how the business is organized and how information is reported internally to the chief operating decision maker. It establishes principles for reporting financial information about operating segments, their products and services, geographical areas, and major customers. The underlying principle is that the segment information disclosed should reflect the internal reporting used by management for decision-making. This means that rather than enforcing a rigid, one-size-fits-all structure, Ind AS 108 emphasizes consistency with internal reports that management uses to allocate resources and assess performance.
Identification of Operating Segments
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses. The component’s operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated and to assess its performance. The component must have discrete financial information available. This definition underscores three important aspects. First, the component must be involved in business activities that may result in revenues and expenses. Second, the component’s results must be reviewed regularly by management. Third, financial data specific to the segment must be available. This segment-oriented reporting approach reflects the management perspective and ensures alignment between internal performance measurement and external disclosure.
The Role of the Chief Operating Decision Maker
The chief operating decision maker, often abbreviated as CODM, plays a crucial role in the application of Ind AS 108. The standard does not mandate a particular title or role for the CODM; it could be the CEO, managing director, or a committee,, depending on the entity’s structure. What matters is the function performed. The CODM is responsible for allocating resources and assessing performance. The operating segments identified must correspond to how the CODM views the business. This management-centric view ensures the reported segment information is relevant and consistent with how the business operates in practice. The identification of the CODM is therefore essential in determining how the entity segments its operations and how segment performance is reported. The assessment of the CODM’s role must consider how decisions are made within the company and what financial and operational data is reviewed regularly.
The Importance of Discrete Financial Information
A component must have discrete financial information available to qualify as an operating segment. This means that revenue, expenses, assets, liabilities, and other relevant financial data for the segment should be identifiable and separable from other components. The availability of this data ensures that segment-level performance can be measured independently. It also allows for aggregation and analysis at a granular level that supports transparency and accountability. Discrete financial information allows investors and analysts to evaluate different areas of the business individually. This is particularly important in diversified entities where business lines may have varying risks, growth prospects, and profitability. The standard requires that segment disclosures reflect the same measurements that are used internally by the CODM. This alignment ensures that users of financial statements receive the same insight into operations as management.
Aggregation Criteria and Management’s Judgment
Ind AS 108 permits the aggregation of operating segments under specific conditions. Segments may be aggregated into a single reportable segment if they exhibit similar economic characteristics and are similar in each of the following respects: the nature of the products and services, the nature of the production processes, the type or class of customer for their products and services, the methods used to distribute their products or provide their services, and the nature of the regulatory environment. The application of aggregation criteria involves significant management judgment. The entity must disclose this judgment and provide a brief explanation of the segments that have been aggregated, along with the economic indicators considered. The disclosure ensures transparency and helps users assess whether aggregation is justified. It prevents the masking of poor-performing segments through undue combination with profitable ones.
Determining Reportable Segments
After identifying operating segments, the entity must determine which segments are reportable. A segment is reportable if it meets any of the following quantitative thresholds: its reported revenue, including both external sales and intersegment sales or transfers, is ten percent or more of the combined revenue of all operating segments; the absolute amount of its reported profit or loss is ten percent or more of the greater, in absolute amount, of either the combined reported profit of all profitable operating segments or the combined reported loss of all unprofitable operating segments; or its assets are ten percent or more of the combined assets of all operating segments. If the total external revenue reported by operating segments constitutes less than seventy-five percent of the entity’s revenue, additional segments must be identified as reportable even if they do not meet the above criteria, until at least seventy-five percent of the entity’s revenue is included in reportable segments. These quantitative thresholds provide a consistent framework for identifying which parts of the business are significant enough to warrant separate disclosure.
Information to Be Disclosed for Each Reportable Segment
For each reportable segment, the entity is required to disclose general information, segment profit or loss, segment assets, segment liabilities, and the basis of measurement. The general information includes the factors used to identify the entity’s reportable segments and the types of products and services from which each reportable segment derives its revenues. Segment profit or loss must be disclosed along with revenues from external customers and intersegment transactions, interest revenue and expense, depreciation and amortization, material non-cash items, income tax expense or benefit, and other significant items. The entity must also describe the measurements of segment profit or loss and segment assets and liabilities used by the CODM. If these measurements differ from those used in the entity’s financial statements, reconciliation must be provided. The disclosure should also explain any changes from prior periods in the measurement methods or the criteria used to determine reportable segments. This level of detail ensures a comprehensive understanding of the entity’s operations and performance drivers.
Reconciliations of Reportable Segment Information
Ind AS 108 requires reconciliation of the total of the reportable segments’ revenues, profit or loss, assets, liabilities, and other material items to the corresponding entity amounts. This ensures that the segment data presented aligns with the entity’s financial statements as a whole. Reconciliations must identify and describe each reconciling item. They provide transparency in cases where measurements used by the CODM differ from those used in the financial statements. For example, the CODM may use non-GAAP performance measures internally, while the financial statements are prepared according to the Indian Accounting Standards. The reconciliation process makes the segment disclosures more understandable and meaningful by linking internal metrics with externally reported numbers.
Other Disclosure Requirements
In addition to the general segment data, Ind AS 108 requires disclosure of revenues from external customers attributed to the entity’s country of domicile and all foreign countries in total. Non-current assets must also be disclosed by geographical area. If revenues from a single external customer amount to ten percent or more of the entity’s total revenue, the entity must disclose the fact, the total revenue from each such customer, and the segment or segments reporting the revenues. However, the entity need not disclose the identity of the customer. This disclosure ensures that significant customer concentration risks are communicated to users of the financial statements. The requirements also enhance comparability across entities operating in different environments.
Application of the Management Approach
A distinctive feature of Ind AS 108 is its adoption of the management approach to segment reporting. Under this approach, segment information is based on the internal reports that are regularly reviewed by the CODM. This method ensures that segment reporting reflects how management manages the business. It aligns external reporting with internal decision-making, resulting in more relevant and useful information. This approach may result in different measurement bases being used for segment disclosures compared to those in the financial statements. However, this difference is acceptable as long as it is clearly explained and reconciled. The management approach also emphasizes the dynamic nature of segment reporting, which may evolve as management’s focus shifts or the organizational structure changes.
Understanding the Nature and Financial Effects of Business Activities
One of the primary goals of segment reporting under Ind AS 108 is to help users understand the nature and financial effects of the different business activities conducted by an entity. Entities often operate in multiple lines of business or across various geographical regions, each with distinct risks, returns, and regulatory environments. Users of financial statements need to be able to identify how each of these segments contributes to the overall financial performance and position of the company. By disclosing segment-specific information, an entity enables investors and analysts to better assess which areas are driving profitability, where costs are increasing, and how effectively resources are being allocated. This transparency facilitates a more accurate evaluation of a company’s prospects and investment potential.
Organizational Structure and Its Impact on Segment Identification
The identification of operating segments under Ind AS 108 is directly influenced by the way an entity is organized internally. Companies may structure their operations based on product lines, services, geographical regions, customer types, or a combination of these. The reporting structure adopted by the company internally becomes the basis for external segment disclosures. The internal organization determines which financial information is available and how it is aggregated or disaggregated for management review. For example, if a manufacturing company is internally divided into electronics, automotive, and healthcare product divisions, and each of these divisions has its own financial reporting and decision-making processes, then each division is likely to be considered an operating segment. The organizational structure helps users of financial statements understand how the entity is managed and where its strategic priorities lie.
Basis of Segment Reporting and Measurement Methods
Ind AS 108 permits segment disclosures to be based on the measures and methods used internally by management, which may differ from the accounting policies applied in the financial statements. This can include the use of different methods for measuring profit or loss, assets, and liabilities. For instance, management may assess performance using earnings before interest, taxes, depreciation, and amortization (EBITDA), while the financial statements are prepared by accrual-based accounting. The standard requires that entities explain the basis of measurement and any differences between internal reporting and statutory accounting. This ensures users are not misled by inconsistencies and can understand the rationale behind the reported figures. Clarity in measurement bases also supports meaningful comparisons between companies with different internal practices.
Consistency in Segment Reporting Across Periods
Consistency is a key element of effective segment reporting. Users of financial statements rely on consistent information to track trends and evaluate performance over time. Ind AS 108 requires entities to maintain consistency in identifying operating segments and in the methods of measurement used for segment information. Any changes in the identification of segments, measurement bases, or internal organizational structure must be disclosed along with reasons and impacts on comparability. If a company reorganizes its internal structure and this results in changes to reported segments, it must restate prior period segment data to ensure comparability. The requirement for restatement ensures that users can perform accurate trend analysis and that the data presented is relevant for decision-making.
Disclosure of Segment Revenues and Profit or Loss
A critical disclosure requirement under Ind AS 108 is the detailed reporting of segment revenue and profit or loss. Segment revenue should include both external sales and intersegment transactions. Segment profit or loss should reflect the measures used by the CODM to evaluate performance. This typically includes operating income, but may also consider other factors such as interest income or expense, depreciation, amortization, and non-cash items. Entities must provide sufficient details to help users understand what drives segment profitability. Disclosures should also explain how intersegment transactions are measured and whether these transactions reflect market-based pricing or are determined through internal cost allocations. Such transparency is important to evaluate the real contribution of each segment to the entity’s financial outcomes.
Disclosure of Segment Assets and Liabilities
Where segment assets and liabilities are reported to the CODM, Ind AS 108 requires these to be disclosed for each reportable segment. The standard does not mandate disclosure of segment assets and liabilities unless this information is provided internally to management. However, when such information is disclosed, it must be accompanied by an explanation of the basis of measurement. This allows users to assess the capital employed in each segment and understand how resources are allocated. It also provides insight into segment-specific risks, such as credit exposure, capital intensity, or operational efficiency. Disclosure of segment liabilities is particularly useful in assessing financial leverage and risk management strategies across different parts of the business.
Disclosure of Other Material Segment Items
In addition to revenue, profit or loss, assets, and liabilities, Ind AS 108 encourages the disclosure of other material items where these are reviewed by the CODM. These can include capital expenditure, depreciation and amortization, significant non-cash expenses, income tax expense, and other relevant indicators. The goal is to give users a complete picture of each segment’s financial health. For example, capital expenditure information helps assess future growth prospects, while non-cash charges such as impairment losses indicate potential issues with asset recoverability. Providing these disclosures at the segment level enables more granular analysis and supports better-informed investment and credit decisions.
Reconciliation with Financial Statements
Because the segment disclosures are based on internal reporting, they may not always align directly with amounts reported in the statutory financial statements. Therefore, Ind AS 108 requires reconciliations between segment totals and the entity-wide amounts reported in the financial statements. These reconciliations must be clearly explained and should identify the nature of any differences. This includes reconciling total segment revenue to consolidated revenue, total segment profit or loss to consolidated profit or loss, and total segment assets and liabilities to consolidated totals. Such reconciliations enhance the reliability of the segment data and allow users to connect internal performance metrics with externally reported results.
Importance of Transparency and Clarity
The overarching aim of segment disclosures under Ind AS 108 is to enhance transparency and provide clarity on how different parts of the business contribute to the entity’s performance. Segment reporting allows stakeholders to evaluate business performance at a more detailed level than the consolidated financial statements. It highlights areas of strength and weakness, supports performance benchmarking, and assists in risk assessment. Clear and comprehensive disclosures help build investor confidence and ensure that management’s internal view of performance is shared with external users. Incomplete or unclear disclosures, on the other hand, can undermine trust and limit the usefulness of the financial statements.
Sector-Specific Considerations in Segment Reporting
While the principles of Ind AS 108 apply uniformly across industries, certain sectors may have unique considerations. For example, in financial services, segments may be based on business units such as retail banking, corporate banking, or asset management. In manufacturing, segments may align with product categories or production facilities. Regulatory requirements may also affect how segments are organized and reported. Entities in regulated industries must consider how these requirements intersect with internal management structures. Segment disclosures should reflect the realities of the business environment and provide relevant information for users to understand how the company operates within its industry.
Judgment in Applying Aggregation Criteria
Ind AS 108 allows entities to aggregate operating segments into a single reportable segment if certain strict conditions are met. This aggregation is permitted only if the segments have similar economic characteristics and are similar in various qualitative aspects such as the nature of products and services, production processes, customer types, distribution methods, and regulatory environments. However, the decision to aggregate requires significant judgment by management. The entity must evaluate whether the similarities across these dimensions justify presenting the segments as a single reportable unit. Since this process is inherently subjective, Ind AS 108 requires entities to disclose the nature of such judgments, explain the basis of aggregation, and describe the economic indicators evaluated. This requirement enhances transparency and prevents misuse of aggregation as a way to obscure poor-performing segments or inflate apparent efficiency.
Disclosure of Management’s Judgment in Segment Identification
The process of segment identification involves more than just applying quantitative thresholds. It also requires management to exercise judgment in determining which components of the business qualify as operating segments. This includes evaluating whether discrete financial information is available for a component, whether the component engages in revenue-generating activities, and whether its results are reviewed regularly by the CODM. Ind AS 108 requires entities to disclose the judgments made in identifying segments, particularly when these are not self-evident. For instance, if certain divisions appear independent but are treated as one operating segment due to shared resources or overlapping management, the entity must clearly explain this reasoning. Such disclosure provides users with an understanding of how the company views and manages its operations, adding credibility to the reported segment information.
Segment Reporting and Internal Resource Allocation
Segment reporting is closely tied to how internal resources are allocated within an organization. The CODM uses segment-specific data to decide where to invest more capital, where to cut costs, and which markets or products to expand. These internal decisions, in turn, are reflected in the segment disclosures required under Ind AS 108. The standard ensures that users of financial statements are given access to the same information that drives strategic decision-making within the company. By aligning external disclosures with internal resource allocation practices, the standard promotes transparency and relevance. It enables stakeholders to evaluate whether the entity is making sound decisions and deploying its assets efficiently across its operating segments.
Quantitative Thresholds for Reportable Segments
To ensure that segment reporting remains focused and meaningful, Ind AS 108 introduces quantitative thresholds that determine whether a segment is reportable. A segment must be disclosed separately if it meets any of the three criteria. First, if its revenue is ten percent or more of the combined revenue of all operating segments. Second, if its reported profit or loss is ten percent or more of the combined profit of all profitable segments or the combined loss of all loss-making segments, whichever is greater in absolute value. Third, if its assets are ten percent or more of the combined assets of all segments. These thresholds ensure that only materially significant segments are disclosed in detail, thereby avoiding excessive information while still ensuring transparency. If the total revenue of all reportable segments is less than seventy-five percent of the entity’s total revenue, additional segments must be disclosed even if they do not meet the above thresholds, until the seventy-five percent threshold is achieved. This safeguard ensures that a substantial portion of the business is covered in the segment disclosures.
Reporting Revenue from External Customers and Intersegment Sales
Ind AS 108 requires entities to disclose revenue from external customers for each reportable segment. In addition, revenue generated from intersegment transactions must also be disclosed separately. These intersegment revenues often arise in vertically integrated companies where one segment supplies goods or services to another. Disclosure of intersegment revenue provides insights into the internal economic activities of the company and shows how different segments depend on each other. Entities must also disclose how intersegment pricing is determined, whether it is based on market rates, cost-plus methods, or internal transfer pricing policies. Understanding intersegment transactions helps users assess the true performance of each segment, especially where certain segments act as internal service providers or cost centers.
Disclosure of Geographic Information
In addition to reporting by operating segments, Ind AS 108 requires entities to disclose geographical information. This includes revenues from external customers attributed to the entity’s country of domicile and revenues from all foreign countries in total. It also includes the location of non-current assets, excluding financial instruments and deferred tax assets. Geographic disclosures provide users with insight into how the entity is exposed to different economic environments. For example, a company heavily reliant on foreign markets may face exchange rate volatility, geopolitical risks, and regulatory complexities. Disclosing the geographic concentration of revenue and assets helps users assess these risks. It also allows investors to understand where future growth opportunities or challenges may lie, based on the regional distribution of the entity’s operations.
Major Customer Disclosure
If revenue from a single external customer accounts for ten percent or more of the total revenue of the entity, Ind AS 108 requires disclosure of that fact. The entity must disclose the total amount of revenue from each such customer and the segments that generate this revenue. However, it is not necessary to identify the customer by name or provide detailed information that could breach confidentiality or competitive advantage. The purpose of this disclosure is to highlight the entity’s dependency on significant customers. Such concentration risks are important for investors and analysts because the loss of a major customer could have a material impact on the entity’s financial performance. This disclosure also helps evaluate customer diversification and the potential impact of market changes.
Impact of Changes in Internal Reporting Structure
Organizational changes such as restructuring, mergers, or strategic shifts may lead to changes in internal reporting. These changes can affect how segments are identified and measured. Ind AS 108 requires that when the internal reporting structure changes in a way that causes the composition of reportable segments to change, the corresponding prior period information must be restated for comparability. The standard also requires the entity to explain the nature and reason for the changes. This ensures that users can perform meaningful comparisons over time and are not misled by inconsistent segment reporting. Transparent disclosure of changes supports the credibility of the financial statements and helps maintain trust among users.
Reconciliation of Segment Totals to Financial Statements
To bridge the gap between internal reporting and statutory financial statements, Ind AS 108 requires detailed reconciliations. These include reconciliation of total reportable segment revenue to consolidated revenue, segment profit or loss to consolidated net profit or loss, segment assets to consolidated assets, and segment liabilities to consolidated liabilities. Any material items that have been excluded from segment profit or loss, such as corporate overheads or central administrative expenses, must also be identified and explained. These reconciliations help users understand the relationship between the internal metrics used by management and the numbers presented in the financial statements. They also highlight adjustments or eliminations that affect the consolidated results.
Importance of Internal Consistency and Auditability
While segment disclosures are based on internal reporting, they must still be auditable and consistent with the overall financial reporting framework. Ind AS 108 expects entities to ensure that the information presented is reliable and complete. Any significant discrepancies between internal and external data must be justified and disclosed. Moreover, entities must maintain appropriate documentation and controls over the processes used to generate segment data. This includes ensuring the accuracy of intersegment transactions, consistency in measurement bases, and proper reconciliation with statutory accounts. The credibility of segment reporting depends on the quality of internal systems and the discipline of financial reporting processes.
Use of Segment Reporting by Financial Statement Users
Segment information plays a vital role in financial analysis and decision-making for various stakeholders. Investors, creditors, regulators, and analysts rely on segment data to assess performance, evaluate risk exposure, and forecast future trends. Segment reporting provides disaggregated insights that are not visible in consolidated figures. For instance, if one segment consistently generates losses while others are profitable, this may indicate the need for restructuring or divestiture. Similarly, segment-specific growth or decline may highlight emerging trends, competitive strengths, or weaknesses. Users also assess how diversified the business is across products, services, and geographies, which influences investment decisions and credit evaluations. In this context, accurate and complete segment disclosure is not just a regulatory requirement but a critical input into economic decision-making.
Enhancing Comparability and Benchmarking
One of the objectives of Ind AS 108 is to enhance the comparability of financial information across companies operating in similar industries or sectors. By requiring entities to report segment data based on their internal organization and decision-making, the standard ensures that the reported information reflects real business dynamics. At the same time, standardised disclosure requirements such as quantitative thresholds and reconciliation statements help users perform meaningful comparisons. Investors and analysts can benchmark segment performance across peer companies, examine operational efficiency, compare growth patterns, and evaluate business models. Disclosures that are clear, consistent, and transparent provide a foundation for such comparative analysis. The usefulness of segment reporting increases when entities follow the disclosure principles rigorously and communicate changes promptly.
Impact on Strategic Business Decisions
Segment disclosures influence not only external stakeholders but also internal business strategy. The process of segment identification, performance measurement, and disclosure encourages management to continuously evaluate the performance of each business component. Poor-performing segments attract greater scrutiny, and profitable segments become targets for investment and expansion. Segment analysis may reveal the need to exit certain markets, launch new product lines, or revise pricing strategies. The act of reporting segment information enforces financial discipline and strategic clarity. It encourages a culture of accountability and facilitates resource optimization. Entities with robust segment reporting practices often exhibit better financial management and stronger governance structures. This alignment between internal decision-making and external reporting enhances the credibility of the entity’s financial disclosures.
Practical Challenges in Implementing Ind AS 108
Despite its clear principles and detailed guidance, the implementation of Ind AS 108 poses several practical challenges. One major challenge is the alignment of internal reporting structures with the standard’s requirements. In large, complex organizations, internal reports may be based on non-standard measures or may not include all necessary information for disclosure. Entities may need to modify their internal systems and reporting frameworks to comply with the disclosure requirements. Another challenge is the application of judgment in identifying operating segments and determining the aggregation of segments. Entities must carefully document their decisions and ensure consistency over time. Differences in measurement bases between internal and statutory reporting also require detailed reconciliations and clear communication. Maintaining data quality, addressing audit concerns, and managing stakeholder expectations further add to the complexity. These challenges require proactive planning, cross-functional collaboration, and continuous process improvements.
Role of Technology and Systems in Segment Reporting
Technology plays a critical role in ensuring accurate and efficient segment reporting. Integrated financial systems and enterprise resource planning platforms allow entities to capture and report segment-specific data consistently. Automation of data collection, consolidation, and reconciliation processes reduces errors and improves timeliness. Business intelligence tools enable real-time analysis and visualization of segment performance, supporting better decision-making and compliance. Entities should invest in system enhancements and reporting capabilities to meet the evolving requirements of Ind AS 108. Proper system configuration, user training, and control mechanisms are essential for maintaining the integrity of segment disclosures. Inaccurate or incomplete reporting due to system limitations can lead to regulatory non-compliance and damage stakeholder trust.
Review and Audit of Segment Information
Segment disclosures are subject to audit and must be supported by sufficient evidence and documentation. Auditors evaluate whether the segment identification is consistent with internal reporting, whether aggregation criteria are applied appropriately, and whether the measurement bases used are reasonable and well-documented. They also review the reconciliations to the financial statements and verify the accuracy of the disclosures. Any inconsistencies, omissions, or unsupported assumptions may lead to audit qualifications or regulatory scrutiny. Therefore, entities must maintain robust documentation of their internal reporting practices, segment identification process, and judgments applied. A well-documented and transparent reporting process not only ensures compliance but also strengthens internal controls and governance.
Regulatory Expectations and Compliance Risk
Regulators expect entities to fully comply with the disclosure requirements of Ind AS 108. Non-compliance or incomplete disclosures may result in enforcement actions, penalties, or reputational damage. Regulatory bodies may question the identification of segments, the basis for aggregation, or the adequacy of reconciliations. Entities that fail to disclose major customers or geographic information properly may be viewed as withholding material information. Compliance with Ind AS 108 is not a one-time exercise but an ongoing responsibility. Changes in business structure, internal processes, or external environments must be reflected promptly in segment disclosures. Regular internal reviews, audit committee oversight, and continuous training are necessary to ensure sustained compliance and avoid regulatory issues.
Case Examples and Industry Practices
Practical examples and industry-specific disclosures provide valuable insights into how different entities apply Ind AS 108. For instance, a telecom company may report segments based on wireless, broadband, and enterprise solutions. A diversified manufacturing group may report segments by product line,, such as chemicals, metals, and electronics. Entities operating in multiple countries may report geographic segments based on regions like Asia, Europe, and North America. Industry practices often influence how segments are defined and disclosed. Benchmarking these practices helps entities improve the quality of their disclosures. It also helps users assess the completeness and accuracy of segment information. Studying real-world cases supports a better understanding of how Ind AS 108 operates in various business contexts.
Importance of Governance in Segment Reporting
Strong corporate governance is essential to ensure the integrity of segment reporting. The board of directors, audit committee, and senior management must actively oversee the segment disclosure process. This includes reviewing the identification of operating segments, evaluating the application of aggregation criteria, and ensuring that internal reports used by the CODM are appropriately reflected in the financial statements. Governance also involves ensuring that adequate systems, controls, and procedures are in place to support reliable reporting. Regular training and awareness programs for finance teams and operational managers contribute to better compliance and data accuracy. An entity with effective governance in segment reporting demonstrates a commitment to transparency, accountability, and stakeholder trust.
Conclusion
Ind AS 108 on Operating Segments plays a crucial role in enhancing the transparency, relevance, and usefulness of financial statements. By aligning segment disclosures with internal management practices, the standard ensures that users receive meaningful insights into the different areas of an entity’s business. The illustrative checklist helps ensure that all key disclosure requirements are met, including segment identification, revenue reporting, geographic information, major customer exposure, and reconciliation to consolidated accounts. Implementing these requirements effectively requires careful judgment, robust systems, and strong governance. Entities that embrace the principles of Ind AS 108 not only meet regulatory obligations but also build greater trust with investors, analysts, and other stakeholders.