International Accounting Standards Board Review International Financial Reporting Standard 8 Essay

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CHAPTER ONE INTRODUCTION BACKGROUND OF THE STUDY The (IASB) International Accounting Standards Board published International Financial Reporting Standard 8 (IFRS 8) Operating Segments on 30 November 2006. The standard superseded IAS 14 Segment Reporting, which was applicable pursuant to Regulation 1606/2002/EC (IAS Regulation). According to Trucco (2015) IFRS 8 Operating Segments requires some particular classes of entities (essentially those with publicly traded securities) to disclose information about their operating segments products and services in the geo graphical areas in which they carry on their operations. Their major customer’s information is based on internal management reports, both in the identification of operating segments and measurement of disclosed information. IFRS 8 defines an operating segment as is a component of an entity that: • Involves in business ac¬tiv¬i¬ties from which it generate revenues and incur expenses (including revenues and expenses relating to trans¬ac¬tions with other com¬po¬nents of the same entity). • Whose operating results are reviewed regularly by the entity 's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its per¬for¬mance and for which discrete financial in¬for¬ma¬tion is available. According to Kumar (2015) the core principle of IFRS 8 requires an entity to provide information to enable users of its financial statements to evaluate the nature and financial effects
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