PFRS 8 —

Operating Segments
 Amended by Annual
Improvements to IFRSs
2010–2012
Amended by Annual Cycle (aggregation of
Improvements to IFRSs operating segments,
ED 8 Operating 2009 (disclosures of reconciliations of
Segments issued segment assets) assets)

History 30 Nov. 2006 18 July 2013

of IFRS 8
19 Jan. 2006 16 Apr. 2009 12 Dec. 2013

IFRS 8 Operating Report and Feedback

Segments issued Statement Post-
implementation
Review: IFRS 8
Operating
Segments published

Scope
However, when both separate
and consolidated financial
statements for the parent are
presented in a single financial
report, segment information need
be presented only on the basis of
the consolidated financial
statements
PFRS 8 applies to the separate or
individual financial statements of an
entity (and to the consolidated financial
statements of a group with a parent):
that files, or is in the process of
filing, its (consolidated)
whose debt or equity financial statements with a
instruments are traded in a securities commission or other
public market or regulatory organisation for the
purpose of issuing any class of
instruments in a public market
 An operating segment is a component of
an entity:
• that engages in business activities from which it may
earn revenues and incur expenses (including
Operating revenues and expenses relating to transactions with
other components of the same entity)
• whose operating results are reviewed regularly by the
segments entity's chief operating decision maker to make
decisions about resources to be allocated to the
segment and assess its performance and
• for which discrete financial information is available
 Reportable segments are operating
segments or aggregations of
operating segments that meet
specified criteria:
Reportable
segments its reported revenue, from
both external customers and
the absolute measure of its
reported profit or loss is 10
per cent or more of the
greater, in absolute amount,
intersegment sales or
of (i) the combined reported its assets are 10 per cent or
transfers, is 10 per cent or
profit of all operating more of the combined assets
more of the combined
segments that did not report of all operating segments.
revenue, internal and
a loss and (ii) the combined
external, of all operating
reported loss of all operating
segments, or
segments that reported a
loss, or
Reportable segments
Two or more operating segments may be
aggregated into a single operating segment
if aggregation is consistent with the core
principles of the standard, the segments
have similar economic characteristics and
are similar in various prescribed respects.
If the total external revenue reported by
operating segments constitutes less than 75
percent of the entity's revenue, additional
operating segments must be identified as
reportable segments (even if they do not meet
the quantitative thresholds set out above)
until at least 75 per cent of the entity's
revenue is included in reportable segments.
 general information about how the entity identified its operating
segments and the types of products and services from which
each operating segment derives its revenues

Disclosure judgements made by management in applying the aggregation

criteria to allow two or more operating segments to be
aggregated
requirements
information about the profit or loss for each reportable segment,
including certain specified revenues* and expenses* such as
revenue from external customers and from transactions with
other segments, interest revenue and expense, depreciation and
amortisation, income tax expense or income and material non-
cash items
 a measure of total assets* and total liabilities* for each
reportable segment, and the amount of investments in
associates and joint ventures and the amounts of additions to
certain non-current assets ('capital expenditure’)

an explanation of the measurements of segment profit or loss,

Disclosure
segment assets and segment liabilities, including certain
minimum disclosures, e.g. how transactions between
segments are measured, the nature of measurement
differences between segment information and other
requirements information included in the financial statements, and
asymmetrical allocations to reportable segments

reconciliations of the totals of segment revenues, reported

segment profit or loss, segment assets*, segment liabilities*
and other material items to corresponding items in the entity's
financial statements
 analyses of revenues and certain non-
some entity-wide disclosures that are
current assets by geographical area –
required even when an entity has only
with an expanded requirement to
one reportable segment, including
disclose revenues/assets by individual
information about each product and
foreign country (if material), irrespective
service or groups of products and
of the identification of operating
services
segments

Disclosure
requirements
information about transactions with
major customers
Remember!
Considerable segment information is
required at interim reporting dates by PAS
34.
THANK
YOU!