IND AS 108

Operating Segments
 IND AS
Sr. No Particulars Compliance
Ref No.
Applicability
1 Ind AS 108 should be applied by entities to which Ind 108.2
AS notified under the Companies Act, 2013 apply. If 108.3
the entity is not required to apply this Ind AS but 108.4
chooses to disclose information about segments that
does not comply with this Ind AS, it shall not describe
the information as segment information. Also, if a
financial report contains both the consolidated
financial statements of a parent that is within the scope
of this Ind AS as well as the parent’s separate financial
statements, segment information is required only in
the consolidated financial statements.
2 a) Is the identification of CODM in accordance with 108.7
the requirements of Ind AS 108?
(Note: The term CODM refers to a function, rather than
to a specific title. The function of the CODM is to allocate
resources to the operating segments of an entity and to
assess the operating segments' performance.)
b) Has the entity identified components (not being
post-employment benefit plans): 108.5
i. That engage in business activities from which 108.6
they may earn revenues and incur expenses,
ii. Whose operating results are regularly reviewed
by the entity’s CODM to make decisions about
resources to be allocated and to assess their
performance, and
iii. For which discrete financial information is
available? (Note: Such components being referred to
as ‘operating components’.)
c) If the CODM uses more than one set of segment
information, has the entity used other factors in
identifying a single set of components as 108.8
constituting its operating segments, including the 108.9
nature of business activities, existence of segment
managers, information presented to the Board?
3 Does the entity report separate information about each 108.11
operating segment that:
a) Has been identified in accordance with Q 2 above,
or results from aggregating two or more of those
segments in accordance with Q 4, and
b) Exceeds the quantitative thresholds in Q 5?
4 Has the entity aggregated two or more operating 108.12
segments into a single operating segment only if the
aggregation is consistent with the core principle of this
Ind AS, the segments have similar economic
characteristics, and the segments are similar in each of
the following respects:
a) The nature of the products and services,
b) The nature of the production processes,
c) The type or class of customer for their products and
services,
d) The methods used to distribute their products or
provide their services, and
e) If applicable, the nature of the regulatory
environment, for example, banking, insurance or
public utilities?
5 a) Has the entity reported separately information 108.13
about an operating segment that meets any of the
following thresholds:
i. Its reported revenue, including both sales to
external customers and intersegment sales or
transfers, is 10 per cent or more of the combined
revenue, internal and external, of all operating
segments,
ii. The absolute amount of its reported profit or loss
is 10 per cent or more of the greater, in absolute
amount, of
(i) The combined reported profit of all
operating segments that did not report a loss
and
(ii) The combined reported loss of all operating
segments that reported a loss, or
iii. Its assets are 10 per cent or more of the combined
assets of all operating segments?
b) If there are any operating segments that do not meet
any of the quantitative thresholds but may be
considered reportable, has the entity separately
disclosed information about these segments, if
management believes that such information would
be useful to users of the financial statements?
6 Has the entity combined information about operating 108.14
segments that do not meet the quantitative thresholds
with information about other operating segments that
do not meet the quantitative thresholds to produce a
 reportable segment only if the operating segments
have similar economic characteristics and share a
majority of the aggregation criteria listed in Q 4?

7 If the total external revenue reported by operating 108.15

segments constitutes less than 75 per cent of the
entity’s revenue, have additional operating segments
been identified as reportable segments (even if they do
not meet the criteria in Q 5) until at least 75 per cent of
the entity’s revenue is included in reportable
segments?
8 a) Has the entity combined and disclosed in an ‘all 108.16
other segments’ separately from other reconciling
items in the reconciliations required by Q 17, all
information about other business activities and
operating segments that are not reportable?
b) Also, has the source of the revenue included in the
all other segments category been described?

9 Is an operating segment identified as a reportable 108.17

segment in the immediately preceding period of
continuing significance?
If yes, then information about that segment shall
continue to be reported separately in the current
period even if it no longer meets the criteria for
reportability given in Q 5.
10 a) Is there a new operating segment which is 108.18
identified as a reportable segment in the current
period in accordance with the quantitative
thresholds?
b) If yes, has the entity restated the segment data for a
prior period presented for comparative purposes to
reflect the newly reportable segment as a separate
segment, even if that segment did not satisfy the
criteria for reportability in Q 5 in the prior period?

11 Has the entity considered the practical limit to the 108.19

number of reportable segments that the entity
separately discloses beyond which segment
information may become too detailed?
(Note: Although no precise limit has been determined, as
the number of segments that are reportable (in accordance
with Q 5 to 10) increases above 10, the entity should
consider whether a practical limit has been reached.)
 Disclosure

12 Has the entity disclosed information to enable users of 108.20

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?

13 Has the entity disclosed the following general 108.21

information: 108.22
a) Factors used to identify the entity’s reportable
segments, including the basis of organisation e.g.
whether management has chosen to organise the
entity around differences in products and services,
geographical areas, regulatory environments, or a
combination of factors and whether operating
segments have been aggregated,

b) Judgement made by management in applying the

aggregation criteria in Q 4. This includes a brief
description of the operating segments that have
been aggregated in this way and the economic
indicators that have been assessed in determining
that the aggregated operating segments share
similar economic characteristics, and

c) Types of products and services from which each

reportable segment derives its revenues:
i. Information about reported segment profit or
loss, including specified revenues and expenses
included in reported segment profit or loss,
segment assets, segment liabilities and the basis
of measurement, as described in this standard, &
ii. Reconciliations of the totals of segment revenues,
reported segment profit or loss, segment assets,
segment liabilities and other material segment
items to corresponding entity amounts as
described in Q17?
(Note: Reconciliations of the amounts in the balance sheet
for reportable segments to the amounts in the entity’s
balance sheet are required for each date at which a balance
sheet is presented. Information for prior periods shall be
restated as described in Q 19 and 20.)
 Information about profit or loss, assets and liabilities

14 Has the entity disclosed the following: 108.23

a) The measure of profit or loss for each reportable
segment,
b) The measure of total assets and liabilities for each
reportable segment if such amounts are regularly
provided to the chief operating decision maker,
c) The following about each reportable segment if the
specified amounts are included in the measure of
segment profit or loss reviewed by the chief
operating decision maker, or are otherwise
regularly provided to the chief operating decision
maker, even if not included in that measure of
segment profit or loss:
i. Revenues from external customers,
ii. Revenues from transactions with other operating
segments of the same entity,
iii. Interest revenue,
iv. Interest expense,
v. Depreciation and amortisation,
vi. Material items of income and expense disclosed,
vii. The entity’s interest in the profit or loss of
associates and joint ventures accounted for by
the equity method,
viii. Income tax expense or income, and
ix. Material non-cash items other than depreciation
and amortisation?
(Note: Interest revenue should be reported separately from
interest expense for each reportable segment unless a
majority of the segment’s revenues are from interest and the
chief operating decision maker relies primarily on net
interest revenue to assess the performance of the segment
and make decisions about resources to be allocated to the
segment. In that situation, the entity may report that
segment’s interest revenue net of its interest expense and
disclose that it has done so.)
15 Has the entity disclosed the following about each 108.24
reportable segment if the specified amounts are
included in the measure of segment assets reviewed by
the chief operating decision maker or are otherwise
regularly provided to the chief operating decision
maker, even if not included in the measure of segment
assets:
 a) The amount of investment in associates and joint
ventures accounted for by the equity method, and
b) The amounts of additions to non-current assets (for
assets classified according to a liquidity
presentation, amounts expected to be recovered
more than 12 months after the reporting date) other
than financial instruments, deferred tax assets,
post-employment benefit assets and rights arising
under insurance contracts?
16 The entity is required to provide an explanation of the 108.27
measurements of segment profit or loss, segment
assets and segment liabilities for each reportable
segment. Has the entity disclosed the following:
a) The basis of accounting for any transactions
between reportable segments,
b) The nature of any differences between the
measurements of the reportable segments’ profits
or losses and the entity’s profit or loss before
income tax expense or income and discontinued
operations (if not apparent from the reconciliations
described in Q 17), those differences could include
accounting policies and policies for allocation of
centrally incurred costs that are necessary for an
understanding of the reported segment
information,
c) The nature of any differences between the
measurements of the reportable segments’ assets
and the entity’s assets (if not apparent from the
reconciliations described in Q 17), those differences
could include accounting policies and policies for
allocation of jointly used assets that are necessary
for an understanding of the reported segment
information,
d) The nature of any differences between the
measurements of the reportable segments’
liabilities and the entity’s liabilities (if not apparent
from the reconciliations described in Q 17), Those
differences could include accounting policies and
policies for allocation of jointly utilised liabilities
that are necessary for an understanding of the
reported segment information,
e) The nature of any changes from prior periods in the
measurement methods used to determine reported
 segment profit or loss and the effect, if any, of those
changes on the measure of segment profit or loss,
and
f) The nature and effect of any asymmetrical
allocations to reportable segments, e.g. the entity
might allocate depreciation expense to a segment
without allocating the related depreciable assets to
that segment?
Reconciliations
17 Has the entity provided reconciliations of the 108.28
following:
a) The total of the reportable segments’ revenues to
the entity’s revenue,
b) The total of the reportable segments’ measures of
profit or loss to the entity’s profit or loss before tax
expense (tax income) and discontinued operations,
however, if the entity allocated to reportable
segments items such as tax expense (tax income),
then it may reconcile the total of the segments’
measures of profit or loss to the entity’s profit or
loss after those items,
c) The total of the reportable segments’ assets to the
entity’s assets if the segment assets are reported in
accordance with Q 14,
d) The total of the reportable segments’ liabilities to
the entity’s liabilities if segment liabilities are
reported in accordance with Q 14, and
e) The total of the reportable segments’ amounts for
every other material item of information disclosed
to the corresponding amount for the entity?
18 Has the entity identified separately and described all 102.28
material reconciling items i.e. the amount of each
material adjustment needed to reconcile reportable
segment profit or loss to the entity’s profit or loss
arising from different accounting policies is identified
separately and described?
19 If the entity has changed the structure of its internal 108.29
organisation in a manner that causes the composition
of its reportable segments to change:
a) Has the corresponding information for earlier
periods, including interim periods been restated
unless the information is not available and the cost
to develop it would be excessive, and
 (Note: The determination of whether the information is
not available and the cost to develop it would be excessive
shall be made for each individual item of disclosure.)
b) Has the entity disclosed whether it has restated the
corresponding items of segment information for
earlier periods?
20 a) If the entity has changed the structure of its internal 108.30
organisation in a manner that causes the
composition of its reportable segments to change,
has the entity restated segment information for
earlier periods, including interim periods, to reflect
the change?
b) If not, then in the year in which the change occurs,
has the entity disclosed segment information for the
current period on both the old basis and the new
basis of segmentation, unless the necessary
information is not available and the cost to develop
it would be excessive?
Entity-wide disclosures

21 Has the entity made entity-wide disclosures as 108.31

required even if the entity has only one reportable
segment?
(Note: Information required by Q 22 to 25 is provided only
if it is not provided as part of the reportable segment
information required by Ind AS 108.)
22 a) Has the entity disclosed the revenues from external 108.32
customers for each product and service, or each
group of similar products and services, unless Q 22
(b) applies?
b) If the necessary information is not available and the
cost to develop it would be excessive, has the entity
disclosed this fact in the financial statements?
(Note: The amounts of revenues reported are based on the
financial information used to produce the entity’s financial
statements.)
23 Has the entity disclosed the following geographical 108.33
information, unless the necessary information is not
available and the cost to develop it would be excessive:
a) Revenues from external customers:
i. Attributed to the entity’s country of domicile,
ii. Attributed to all foreign countries in total from
which the entity derives revenues. If revenues
from external customers attributed to an
 individual foreign country are material, then
those revenues are disclosed separately. Disclose
the basis for attributing revenues from external
customers to individual countries,
b) Non-current assets (for assets classified according
to a liquidity presentation, amounts expected to be
recovered more than 12 months after the reporting
date) other than financial instruments, deferred tax
assets, post-employment benefit assets and rights
arising under insurance contracts:
i. Located in the entity’s country of domicile,
ii. Located in all foreign countries in total in which
the entity holds assets. If assets in an individual
foreign country are material, then those assets
are disclosed separately?
24 a) Has the entity ensured that the amounts reported 108.33
are based on the financial information that is used
to produce the entity’s financial statements?
b) If the necessary information is not available and the
cost to develop it would be excessive, has the entity
disclosed such fact?
(Note: The entity may disclose, in addition to this
information, subtotals of geographical information about
groups of countries.)
Information about major customers

25 a) If revenues from transactions with a single external 108.34

customer amount to 10 per cent or more of an
entity’s revenues, has the entity provided the
following information about the extent of its
reliance on such customers:
i. Disclosure of that fact,
ii. The total amount of revenues from each such
customer, and
iii. The identity of the segment or segments
reporting the revenues?
(Note: The entity need not disclose the identity of a major
customer or the amount of revenues that each segment
reports from that customer.)
b) For the above purpose, has a group of entities
known to a reporting entity to be under common
control been considered a single customer?