Wiley Interpretation and Application of IFRS Standards

28 OPERATING SEGMENTS

• Introduction
• Scope
• Definitions of Terms
• Identification
• Concepts and Requirements Under IFRS 8
  • Operating Segments and Reportable Segments
    • Operating segments
    • Chief operating decision maker
    • Reportable segments
• Disclosure Requirements
  • Entity-wide disclosure requirements
• Example of Financial Statement Disclosures Under IFRS
• US GAAP Comparison

INTRODUCTION

Segmental information is essential for good management as it enables management to monitor performance within its specific business and geographical regions and to decide how best to allocate resources to segments.

The value of segmental information is not only limited to its application as an internal management tool. It also has an important role in external reporting, since by providing segmental information in financial statements, the entity’s management can explain to investors and to the market many of the factors that contribute to the results for the year.

The core principle set out in IFRS 8 requires an entity to disclose information that enables users of the financial statements to evaluate the nature and financial effects of the business activities in which the entity engages and the economic environments in which it operates. This should be considered when an entity forms its judgements about how and what information should be disclosed.

Source of IFRS

IFRS 8

SCOPE

IFRS 8 applies to:

1. The separate or individual financial statements of an entity:
   1. Whose debt or equity ...