- The transfer or exchange of goods for monetary compensation from one department in a company to another department within the same company. Intersegment sales exists where a corporation has multiple segments or divisions, and product sales occur between these segments. A segment report containing data related to intersegment sales and transfers is typically included in a corporation's annual report.
Segments are components of the same corporation or entity that provide products (or a group of products) that have different risks and returns than another segment. Intersegment sales can be manufacturing products, such as the sale or transfer of steel from one segment to another, or it can be a financial product, as with the banking and insurance industries. Accurate bookkeeping is important in order to correctly assign revenue and expenses related to the transfer or sales.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Operating expenses — Segment expenses related both to revenue from sales to unaffiliated customers and revenue from intersegment sales or transfers, excluding loss on disposition of property, plant, and equipment; interest expenses and financial charges; foreign… … Energy terms
Operating revenues — Segment revenues both from sales to unaffiliated customers (i.e., revenue from customers outside the enterprise as reported in the company s consolidated income statement) and from intersegment sales or transfers, if any, of product and… … Energy terms
3M — For other uses, see 3M (disambiguation). 3M Company Type Public Traded as NYSE: MMM … Wikipedia