IFRS 8 Operating Segments
Effective date from Annual periods beginning on or after 1 January
2009, with earlier
application permitted. Supersedes IAS 14 Segment Reporting from date of application.
Summary
• An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates.
• Applies to the consolidated financial statements of a group with a parent (and to the separate or individual financial statements of an entity) are listed.
• An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity); whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and for which discrete financial information is available.
Disclosures:
• the basis of accounting for any transactions between reportable segments;
• the nature of any
differences between the measurements of the reportable segments’ profits or losses and the entity’s profit or loss before income tax expense or income and discontinued operations
• the nature of any differences between the measurements of the reportable segments’ assets and the entity’s assets
• the nature of any differences between the measurements of the reportable segments’ liabilities and the entity’s liabilities
• the nature of any changes from prior periods in the measurement methods used to determine reported segment profit or loss and the effect, if any, of those changes on the measure of segment profit or loss
• the nature and effect of any asymmetrical allocations to reportable segments.
• some entity-wide disclosures are required even when an entity has only one reportable segment. These include information about each product and service or groups of products and services.
• analyses of revenues and certain non-current assets by geographical area are required from all entities – with an expanded requirement to disclose revenues/assets by individual foreign country (if material), irrespective of the entity’s organisation.
• there is also a requirement to disclose information about transactions with major external customers (10% or more of the entity’s revenue).