IPSAS Explained: A Summary of International Public Sector Accounting Standards, 2nd Edition

IPSAS 18: Segment Reporting

Objective

The objective of IPSAS 18 is to establish principles for reporting financial information by segments. The disclosure of this information will:

a) Help users of the financial statements to better understand the entity's past performance and to identify the resources allocated to support the major activities of the entity

b) Enhance the transparency of financial reporting and enable the entity to better discharge its accountability obligations

The IFRS on which the IPSAS is based

IAS 14, Segment Reporting (as revised 1997)

Content

Principal definitions

A segment is a distinguishable activity or group of activities of an entity for which it is appropriate to separately report financial information for the purpose of evaluating the entity's past performance in achieving its objectives and for making decisions about the future allocation of resources.

IPSAS 18 distinguishes between service segments and geographical segments. A service segment refers to a distinguishable component of an entity that is engaged in providing related outputs or achieving particular operating objectives consistent with the overall mission of each entity. A geographical segment is a distinguishable component of an entity that is engaged in providing outputs or achieving particular operating objectives within a particular geographical area.

Scope

An entity which prepares and presents financial statements under the accrual basis of accounting should apply IPSAS 18 in ...