1 INTRODUCTION AND BACKGROUND

1.1 BACKGROUND OF THE STANDARD.

This paper is targeted towards the application of International Financial Reporting

Standard 8 Operating Segments within a listed company on the Zimbabwe stock
exchange. This is in order to determine whether certain literature written on the
applicability and adopt-ability of the standard is more or less correct if if there exists
evidence to counter the literature on that account. The previous applicable standard
having been International Accounting Standard 14 Reporting financial information by
segment which was issued in 1981 and then further assessed and then amended by the
following standards:
 IAS 2 Inventories December 2003
 IAS 8 Accounting policies,changes in accounting Estimates and Errors
December 2003
 IAS 16 Property,Plant and Equipment December 2003
 IFRS 3 Business combinations March 2004
 IFRS 5 Non-current Assets Held for Sale and Discontinued Operations March
2004
 IFRS 7 Financial Instruments Disclosures August 2005
The standard (IFRS 8) was issued in 2006 and a further amendment by:
 IAS 1 Presentation of Financial Statements September 2007
1.2 THE ORGANISATION

1.2.1 History

The organization that will be the focus of this paper is National Foods Holdings
Limited. It is a consumers goods company that has operated in Zimbabwe for over
100 years. It strives to deliver innovative sustainable products to ensure the future
health of the nation helping people enjoy life, stay healthier and live more fulfilling
lives. It believes in building lasting relations with stakeholders,consumers and
commodities at large. Having been established in 1908 as J Palte and Co it finally
became National Foods Holdings Limited in 1975. It has achieved various other
milestones in the years since as it continues to grow.

1.2.2 PRODUCT PORTFOLIO

Its product portfolio includes the following:

a)National Foods Limited
Flour milling
Maize milling
Downpacked
Traded goods
Snacks
Biscuits
Stockfeeds
Cereals

b)National Foods Properties Limited

Clairedelune Investments private limited a property owning company

c) Botswana Milling and Produce Company(Proprietary) Limited

Red Seal Manufacturers (Proprietary) Limited a property owning company.
2 LITERATURE REVIEW