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IFRS Essentials by Norbert Lüdenbach, Dieter Christian

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IFRS 8 OPERATING SEGMENTS

1 INTRODUCTION

Segment reporting according to IFRS 8 aims at enabling users of financial statements to see an entity through the eyes of its management. Therefore, in the segment report, the entity has to report segments that correspond to internal management reports. Similarly, the amounts disclosed according to IFRS 8 are derived from internal management reports and therefore do not necessarily have to be determined in accordance with IFRSs.

2 SCOPE

IFRS 8 applies to the separate and consolidated financial statements of an entity whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market including local and regional markets) or that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organization for the purpose of issuing any class of instruments in a public market (IFRS 8.2). If a financial report contains both the consolidated financial statements of a parent (within the scope of IFRS 8) and the parent's separate financial statements, segment information is required only in the consolidated financial statements (IFRS 8.4).

IAS 34 includes disclosure requirements with regard to segment information in interim financial reports (IAS 34.16Ag).

3 OPERATING SEGMENTS AND CHIEF OPERATING DECISION MAKER

An operating segment is a component of an entity that meets all of the following criteria (IFRS 8.5 and IFRS 8.Appendix A): ...

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