IFRS For Dummies

Chapter 15

Skilfully Segmenting Information

In This Chapter

Understanding operating segments

Reporting on reportable segments

Correcting mistakes: restating segment information

Dealing with disclosures

Some companies operate in a number of different classes of business, or have a variety of geographical locations. A typical example is that large supermarkets nowadays don’t just sell food and groceries, they deal with all sorts of other things like mobile phones, TVs, domestic appliances and even loans and credit cards. For businesses such as supermarkets that operate in a number of different classes, financial information on each class of business, geographic location and regulatory or economic environments is useful for management and investors. This segmental information is mandatory for companies that trade their equity instruments (usually shares) in a public market (usually a stock exchange). The standard that deals with segmental information is IFRS 8 Operating Segments.

In this chapter, I help you to define and identify operating segments. I look at what happens in the event ...