IFRS 8: OPERATING SEGMENTS

Meidyah Indreswari, PhD, CA, CRMA, CCSA

@MI
CORE PRINCIPLE

 Entity shall discloce information to enable users of its financial

statements to evaluate the nature and financial effects of the
business activities in which it engages and the economic
environment in which it operates.
 Apply to entity (1) whose debt or equity instruments are traded in a
public market (listed company only) or (2) who files or is in the
process of filling its financial statements for the purpose of public
trading
 Single entity  separate financial statements
 Group  consolidated financial statements

@MI
OPERATING SEGMENT

@MI
COMBINED OPERATING SEGMENTS CRITERIA

 The nature of the product or services

 The nature of the production process
 The type or class of customer
 The methods used to distribute the products/services
 The nature of the regulatory environment

@MI
WHAT MUST BE DISCLOSED?

 Segment revenue > 10% of total revenue (internal and external)

 Segment profits > 10% of total profits
 Segment assets > 10% of total assets
And,
If total reported segment revenue is not > 75% of external revenue,
additional segments are required to be disclosed

@MI
REPORTING CRITERIA

@MI
REPORTING CRITERIA

@MI
DISCLOSURE

@MI
DISCLOSURE

@MI
DISCLOSURE

@MI
DISCLOSURE

@MI
DISCLOSURE

@MI
WHY DISCLOSURE REQUIRED?

 Understand past performance

 Understand the risks and rewards of each segment
 Make better informed judgment

@MI
EXAMPLE

@MI
EXAMPLE

@MI
@MI
@MI
@MI
EXAMPLE

@MI
SEKIAN

@MI