An Introduction to Segment Reporting for IFRS 8

Introduction to Segment Reporting

Companies are often involved in a number of different industries or business activities.  They often expand and diversify their operations across geographical areas.

As a result of this, their group is exposed to different rates of return, growth opportunities and risk for each ‘segment’ of their business.

Investors want information that highlights the performance of the various components of the organization.

This is where IFRS 8 Operating Segments steps in.

Read more

Segment Reporting: Identifying Operating Segments for IFRS 8

Operating Segment Identification

One of the first things an entity must do under IFRS 8 is to identify an operating segment.

Under IFRS 8 an operating segment is a component of an entity:

  • that engages in business activities from which it earns revenues and incurs expenses
  • 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.

Read more

Segment Reporting for IFRS 8

Segment reporting provides financial information about the individual units of the company. It’s intended to give information to users of the financial statements regarding the financial performance and position of the most important operating units of a company.

Read more