Wiley International Trends in Financial Reporting under IFRS: Including Comparisons with US GAAP, Chinese GAAP, and Indian GAAP

CHAPTER 29

OPERATING SEGMENTS (IFRS 8)

1. OBJECTIVE

1.1 This Standard applies to the consolidated financial statements of a group with a parent and to the separate or individual financial statements of an entity

• Whose debt or equity instruments are traded in a public market 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.

1.2 This Standard clarifies that when both the parent’s separate (stand-alone) financial statements and its consolidated financial statements are presented in the same financial report, segment information as required by this Standard needs to be presented only for the consolidated financial statements.

2. SYNOPSIS OF THE STANDARD

This Standard sets out the requirements for disclosure of information about an entity’s operating segments and also about the entity’s products and services, the geographical areas in which it operates and its major customers. A summary of this Standard follows.

2.1 An entity should disclose information to enable users of its financial statements to evaluate the nature and financial effects of the types of business activities in which it engages and the economic environments in which it operates.

2.2 An operating segment is a component of an entity

• That engages in business activities from which it may earn revenues and incur expenses;
• Whose operating results are reviewed regularly ...