International GAAP 2013: Generally Accepted Accounting Principles under International Financial Reporting Standards

Chapter 34

Operating segments

1 Introduction

1.1 Background

1.2 The main features of IFRS 8

1.3 Terms used in IFRS 8

1.4 Transitional provisions

2 Objective and scope of IFRS 8

2.1 Objective

2.2 Scope of IFRS 8

2.2.1 The meaning of ‘traded in a public market’

2.2.2 Consolidated financial statements presented with those of the parent

2.2.3 Extending the scope of IFRS 8 to ‘publicly accountable entities’

2.2.4 Entities providing segment information on a voluntary basis

3 Identifying a single set of operating segments

3.1 Definition of an operating segment

3.1.1 Revenue earning business activities

3.1.2 ‘Chief operating decision maker’ and ‘segment manager’

3.1.3 Availability of discrete financial information

3.1.4 When a single set of components is not immediately apparent

3.1.5 An equity accounted investment can be an operating segment

3.2 Identifying externally reportable segments

3.2.1 Aggregation criteria – combining internally reported operating segments

3.2.2 Quantitative thresholds – operating segments which are reportable because of their size

3.2.3 Combining small operating segments into a larger reportable segment

3.2.4 ‘All other segments’

3.2.5 A ‘practical limit’ for the number of reported operating segments

3.2.6 Restatement of segments reported in comparative periods

4 Measurement

5 Information to be disclosed about reportable segments

5.1 General information about reportable segments

5.1.1 Proposed improvements to IFRS 8 in relation to disclosure of how operating ...