About
IFRS 8 requires an entity whose debt or equity securities are publicly traded to disclose information to enable users of its financial statements to evaluate the nature and financial effects of the different business activities in which it engages and the different economic environments in which it operates.
It specifies how an entity should report information about its operating segments in annual financial statements and in interim financial reports. It also sets out requirements for related disclosures about products and services, geographical areas and major customers.
What you should know
- Know and apply the definitions related to operating segments.
- Identify the chief operating decision maker and determine operating segments.
- Determine reportable segments using the quantitative thresholds.
- Apply the criteria for aggregating operating segments.
- Present segment information based on the information reviewed by management.
- Reconcile segment information to the amounts reported in the financial statements.
- Present and disclose entity-wide information about products, services, geographical areas and major customers.
- Discuss the objectives of financial reporting by segments
- Identify the types of entities that are within the scope of IFRS 8
- Compare the management approach adopted by IFRS 8 with the risks and rewards approach
- Identify operating segments in accordance with IFRS 8
- Distinguish between operating segments and reportable segments
- Apply the definition of reportable segments
- Explain the disclosure requirements of IFRS 8
- Analyse the disclosures made by companies applying IFRS 8 in Practice