1-Core principle

An entity shall disclose 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 environments in which it operates.… Continue reading


This IFRS (IFRS 8) shall apply to:

  1. the separate or individual financial statements of an entity:
    1. whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or
    2. that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market; and
  2. the consolidated financial
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If an entity that is not required to apply this IFRS (IFRS 8)  chooses to disclose information about segments that does not comply with this IFRS, it shall not describe the information as segment information.… Continue reading


If a financial report contains both the consolidated financial statements of a parent that is within the scope of this IFRS (IFRS 8)  as well as the parent’s separate financial statements, segment information is required only in the consolidated financial statements.… Continue reading

5-Operating segments

An operating segment is a component of an entity:

  1. that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity),
  2. whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and
  3. for which discrete financial information is available.

An operating segment may engage in business … Continue reading

6-Operating segments

Not every part of an entity is necessarily an operating segment or part of an operating segment. For example, a corporate headquarters or some functional departments may not earn revenues or may earn revenues that are only incidental to the activities of the entity and would not be operating segments. For the purposes of this IFRS, an entity’s post-employment benefit plans are not operating segments.… Continue reading

7-Operating segments

The term ‘chief operating decision maker’ identifies a function, not necessarily a manager with a specific title. That function is to allocate resources to and assess the performance of the operating segments of an entity. Often the chief operating decision maker of an entity is its chief executive officer or chief operating officer but, for example, it may be a group of executive directors or others.… Continue reading

8-Operating segments

For many entities, the three characteristics of operating segments described in paragraph 5 clearly identify its operating segments.

However, an entity may produce reports in which its business activities are presented in a variety of ways. If the chief operating decision maker uses more than one set of segment information, other factors may identify a single set of components as constituting an entity’s operating segments, including the nature of the business activities of each component, the existence of managers responsible … Continue reading

9-Operating segments

Generally, an operating segment has a segment manager who is directly accountable to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment.

The term ‘segment manager’ identifies a function, not necessarily a manager with a specific title. The chief operating decision maker also may be the segment manager for some operating segments. A single manager may be the segment manager for more than one operating segment.

If the … Continue reading

10-Operating segments

The characteristics in paragraph 5 may apply to two or more overlapping sets of components for which managers are held responsible. That structure is sometimes referred to as a matrix form of organisation.

For example, in some entities, some managers are responsible for different product and service lines worldwide, whereas other managers are responsible for specific geographical areas.

The chief operating decision maker regularly reviews the operating results of both sets of components, and financial information is available for both. … Continue reading