Wiley 2022 Interpretation and Application of IFRS Standards

28OPERATING SEGMENTS

• Introduction
• Scope
• Definitions of Terms
• Identification
• Concepts and Requirements
  • Operating Segments and Reportable Segments
    • Operating segments
    • Chief operating decision maker
    • Reportable segments
• Disclosure Requirements
  • • Entity‐wide disclosure requirements
• Example of Financial Statement Disclosures Under IFRS
  • Net Trade Receivables
  • Major Customers
• US GAAP Comparison

INTRODUCTION

Segmental information has an important role in external reporting, by providing information to investors and to the market which assist their understanding of an entity's results for the year.

The core principle set out in IFRS 8 requires an entity to disclose information that enables users of the financial statements to evaluate the nature and financial effects of the business activities in which the entity engages and the economic environments in which it operates. This should be considered when an entity forms its judgements about how and what information should be disclosed.

Source of IFRS

IFRS 8

SCOPE

IFRS 8 applies to:

1. The separate or individual financial statements of an entity:
   1. 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
   2. That files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market; ...