IFRS 8 – Operating Segments


IFRS 8 applies to the separate or individual financial statements of an entity (and to the consolidated financial statements of a group with a parent):

However, when both separate and consolidated financial statements for the parent are presented in a single financial report, segment information need be shown only on the basis of the consolidated financial statements [IFRS 8.4]

Operating segments

IFRS 8 defines an operating segment as follows. An operating segment is a component of an entity: [IFRS 8.2]

Reportable segments

IFRS 8 requires an entity to report financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating segments that meet specified criteria: [IFRS 8.13]

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. [IFRS 8.12]

If the total external revenue reported by operating segments constitutes less than 75 per cent 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. [IFRS 8.15]

Disclosure requirements

Required disclosures include:

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