IFRS Operating Segments – Segment Reporting (IFRS 8)
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IFRS 8 specifies how an organization must present information about its operating segments in its annual financial statements as well as in its interim financial reports. In addition, it sets out the requirements for related disclosures about products and services, geographical areas, and major customers by reportable segment.
IFRS 8 requires an entity to report financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance. Generally, financial information is required to be reported on the same basis as is used internally for evaluating operating segment performance and deciding how to allocate resources to operating segments.
- The difference between an Operating segment and a Reportable segment
- How costs are aggregated by segment
- IFRS8 requirements for reporting Profit or Loss, Assets and Liabilities
- Measurement criteria under IFRS 8
- Reconciliations and restatement of previously reported information
- Entity-wide disclosures as well as segment disclosures
- Required disclosures about major customers
Course Level - Basic and Intermediate
Who Should Attend
- Board Members
- External Auditors
- Compliance Professionals
- Operational Professionals
- Finance Professionals
- Internal Auditors
Why Should You Attend
If your company operates its businesses as separating operating segments, it must adhere to IFRS 8 Segment Reporting. Your company will have to disclose your information to enable users of your company’s 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.
IFRS 8 requires an entity to report a measure of operating segment profit or loss and of segment assets. It also requires an entity to report a measure of segment liabilities and the particular income and expense items if such measures are regularly provided to the chief operating decision-maker. It requires reconciliations of total reportable segment revenues, total profit or loss, total assets, total liabilities, and other amounts disclosed for reportable segments to corresponding amounts in the entity’s financial statements.
IFRS 8 requires an entity to report information about the revenues derived from its products or services (or groups of similar products and services), about the countries in which it earns revenues and holds assets, and about major customers, regardless of whether that information is used by management in making operating decisions. However, the IFRS does not require an entity to report information that is not prepared for internal use if the necessary information is not available and the cost to develop it would be excessive.
IFRS 8 also requires an entity to give descriptive information about the way the operating segments were determined, the products and services provided by the segments, differences between the measurements used in reporting segment information and those used in the entity’s financial statements, and changes in the measurement of segment amounts from period to period.
IFRS 8 specifies how an entity should report information about its operating segments in annual financial statements and, as a consequential amendment to IAS 34 Interim Financial Reporting, requires an entity to report selected information about its operating segments in interim financial reports. It also sets out requirements for related disclosures about products and services, geographical areas, and major customers.