The Requirements Of Ifrs 8 Operating Segments

1132 Words Nov 29th, 2014 5 Pages
Segmental Information


In general, IFRS 8 Operating Segments place a requirement on specific classes of entities (particularly those entities that have publicly traded securities) to disclose information concerning their respective operating segments, products and services, the geographical areas in which they compete as well as their major customers (IFRS 8 Operating Segments, 2014). The information that is provided by corporations pursuant to these requirements is based on internal management reports concerning the measurement of disclosed segment information as well as the identification of operating segments (IFRS 8 Operating Segments, 2014). Although its proponents argue that the IFRS 8 Operating Segments are adequate for their intended purposes, critics counter that they are inadequate for certain applications. To determine the facts, this paper reviews the relevant literature to provide a timely discussion concerning whether the requirements of IFRS 8 Operating Segments can reasonably be criticized as being inadequate followed by a summary of the research and important findings concerning these issues in the conclusion.

Review and Discussion The current version of IFRS 8 was promulgated in November 2006 with applicability to annual periods beginning on or after 1 January 2009 (IFRS 8 Operating Segments, 2014). At present, IFRS 8 is applicable to the individual or separate financial statements of an entity (and to the consolidated financial…
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