IFRS 8 operating segments seeks to assist the user of financial statement gain clearer understanding of the performance of the business by requiring the dis-aggregation of the reported financial information into segments.
Information to be reported
- The IFRS requires an entity to report a measure of operating segment profit or loss and of segment assets.
- It also require an entity to report a measure of segment liabilities and particular income and expenses items if such measures are regularly provided to the chief operating decision maker.
- It require reconciliation of the 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
- Factors used to identify reportable segment
- Type of product and services from which each reportable segment derive its revenues
- Reconciliation of segment totals ( for revenues,profit or loss, assets, liabilities and other material amount) to the entity’s financial statements amounts.
- Restatement of prior period amounts to be comparable with current period disclosures.
Specific disclosures required in respect of each reportable segment
- Revenue from external customers
- Revenue from intra group transactions
- Interest revenues
- Interest expenses
- Depreciation and amortization
- Material income and expense items
Entity wide disclosures;
- If a single customer amount for more than 10% of total revenues, disclose this, the amount of revenues so accruing, and the segment reporting this revenue. There is no requirement to disclose the identity of the customer.
- Non current assets located in home country and total non current assets located oversee
- Revenue from home country plus total revenue from foreign countries
- Information about geographical areas
- Information about product and services
- Revenue from external customers for each product and services
- Information about major customers