Q1: What is IFRS 8?
IFRS 8 is an International Financial Reporting Standard that provides guidance on operating segment reporting. It requires an entity to report financial and descriptive information about its operating segments.
Q2: What is an operating segment?
An operating segment is a component of an entity that engages in business activities from which it may earn revenues and incur expenses, whose operating results are reviewed by the entity's chief operating decision maker (CODM), and for which discrete financial information is available.
Q3: What are the disclosure requirements under IFRS 8?
The disclosure requirements under IFRS 8 include:
- Information about the entity's operating segments, including their nature of operations and the products or services they provide.
- Information about the factors used to identify the entity's operating segments.
- Information about the entity's performance measures used to evaluate the operating segments, including revenues, profit or loss, assets, liabilities, and other measures deemed appropriate.
- Information about the entity's reconciliation of the total reportable segments' results to the entity's financial statements.
- Information about the entity's geographical information, including revenues from external customers and non-current assets located in each geographical area.
Q4: Who is responsible for ensuring compliance with IFRS 8 disclosure requirements?
The entity's management is responsible for ensuring compliance with the disclosure requirements of IFRS 8. Auditors are responsible for auditing the entity's compliance with those requirements and reporting on any identified deficiencies.
Q5: Are there any exemptions or exceptions to the requirements of IFRS 8?
IFRS 8 does not provide any specific exemptions or exceptions to the disclosure requirements. However, entities may use judgement to determine the appropriate level of aggregation for their operating segments and may aggregate two or more operating segments into a single reportable segment if certain criteria are met. Additionally, IFRS 8 provides limited exemptions for small and medium-sized entities that meet certain criteria.