International Financial Reporting Standard 8 Operating Segments (IFRS 8) is set out in paragraphs 1⁠–⁠37 and Appendices A and B. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Definitions of terms are given in the Glossary for International Financial Reporting Standards. IFRS 8 should be read in the context of its core principle and the Basis for Conclusions, the Preface to IFRS Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance. [Refer:IAS 8 paragraphs 10⁠–⁠12]

International Financial Reporting Standard 8Operating Segments

Core principle

1

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.

Scope

[Refer:Basis for Conclusions paragraphs BC18⁠–⁠BC23]

2

This IFRS shall apply to:

(a)

the separate or individual financial statements of an entity:

(i)

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

(ii)

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

(b)

the consolidated financial statements of a group with a parent:

(i)

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

(ii)

that files, or is in the process of filing, the consolidated financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market.

[Refer:Basis for Conclusions paragraph BC23]

3

If an entity that is not required to apply this IFRS chooses to disclose information about segments that does not comply with this IFRS, it shall not describe the information as segment information.

[Refer:Basis for Conclusions paragraph BC22]

4

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

[Refer:Basis for Conclusions paragraph BC21]

Operating segments

5

An operating segment is a component of an entity:

(a)

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),

(b)

whose operating results are regularly reviewed by the entity’s chief operating decision maker [Refer:paragraph 7] to make decisions about resources to be allocated to the segment and assess its performance, and

(c)

for which discrete financial information is available.

An operating segment may engage in business activities for which it has yet to earn revenues, for example, start‑up operations may be operating segments before earning revenues.

6

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.

7

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.

8

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 for them, and information presented to the board of directors.

9

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 [Refer:paragraph 7] 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 characteristics in paragraph 5 apply to more than one set of components of an organisation but there is only one set for which segment managers are held responsible, that set of components constitutes the operating segments.

10

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 [Refer:paragraph 7] regularly reviews the operating results of both sets of components, and financial information is available for both. In that situation, the entity shall determine which set of components constitutes the operating segments by reference to the core principle [Refer:paragraph 1].

[Refer:Basis for Conclusions paragraph BC27]

Reportable segments

[Refer:

Implementation Guidance paragraph IG7

FASB’s Basis for Conclusions on SFAS 131 paragraphs 71 and 72]

11

An entity shall report separately information about each operating segment that:

(a)

has been identified in accordance with paragraphs 5⁠–⁠10 or results from aggregating two or more of those segments in accordance with paragraph 12, and

(b)

exceeds the quantitative thresholds in paragraph 13.

Paragraphs 14⁠–⁠19 specify other situations in which separate information about an operating segment shall be reported.

Aggregation criteria

[Refer:

Basis for Conclusions paragraph BC30

FASB’s Basis for Conclusions on SFAS 131 paragraphs 73 and 74]

12

Operating segments [Refer:paragraphs 5⁠–⁠10] often exhibit similar long‑term financial performance if they have similar economic characteristics. For example, similar long‑term average gross margins for two operating segments would be expected if their economic characteristics were similar. Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principle of this IFRS, [Refer:paragraph 1] the segments have similar economic characteristics, and the segments are similar in each of the following respects:

(a)

the nature of the products and services;

(b)

the nature of the production processes;

(c)

the type or class of customer for their products and services;

(d)

the methods used to distribute their products or provide their services; and

(e)

if applicable, the nature of the regulatory environment, for example, banking, insurance or public utilities.

Quantitative thresholds

[Refer:

Basis for Conclusions paragraphs BC28⁠–⁠BC30

Implementation Guidance paragraph IG7

FASB’s Basis for Conclusions on SFAS 131 paragraphs 75⁠–⁠78]

13

An entity shall report separately information about an operating segment [Refer:paragraphs 5⁠–⁠10] that meets any of the following quantitative thresholds:

(a)

Its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10 per cent or more of the combined revenue, internal and external, of all operating segments.

(b)

The absolute amount of its reported profit or loss is 10 per cent or more of the greater, in absolute amount, of (i) the combined reported profit of all operating segments that did not report a loss and (ii) the combined reported loss of all operating segments that reported a loss.

(c)

Its assets are 10 per cent or more of the combined assets of all operating segments.

[Refer:FASB’s Basis for Conclusions on SFAS 131 paragraph 76]

Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if management believes that information about the segment would be useful to users of the financial statements.

14

An entity may combine information about operating segments [Refer:paragraphs 5⁠–⁠10] that do not meet the quantitative thresholds with information about other operating segments that do not meet the quantitative thresholds to produce a reportable segment only if the operating segments have similar economic characteristics and share a majority of the aggregation criteria listed in paragraph 12.

[Refer:Basis for Conclusions paragraphs BC31⁠–⁠BC33]

15

If the total external revenue reported by operating segments [Refer:paragraphs 5⁠–⁠10] constitutes less than 75 per cent of the entity’s revenue, additional operating segments shall be identified as reportable segments (even if they do not meet the criteria in paragraph 13) until at least 75 per cent of the entity’s revenue is included in reportable segments.

[Refer:

Basis for Conclusions paragraphs BC31⁠–⁠BC33

FASB’s Basis for Conclusions on SFAS 131 paragraph 76]

16

Information about other business activities and operating segments [Refer:paragraphs 5⁠–⁠10] that are not reportable shall be combined and disclosed in an ‘all other segments’ category separately from other reconciling items in the reconciliations required by paragraph 28. The sources of the revenue included in the ‘all other segments’ category shall be described.

All other segments [member] Disclosure member IFRS 15.115 Disclosure 831150, 871100
Description of sources of revenue for all other segments Disclosure text 871100

17

If management judges that an operating segment [Refer:paragraphs 5⁠–⁠10] identified as a reportable segment in the immediately preceding period is of continuing significance, information about that segment shall continue to be reported separately in the current period even if it no longer meets the criteria for reportability in paragraph 13.

18

If an operating segment [Refer:paragraphs 5⁠–⁠10] is identified as a reportable segment in the current period in accordance with the quantitative thresholds, [Refer:paragraph 13] segment data for a prior period presented for comparative purposes shall be restated to reflect the newly reportable segment as a separate segment, even if that segment did not satisfy the criteria for reportability in paragraph 13 in the prior period, unless the necessary information is not available and the cost to develop it would be excessive.

19

There may be a practical limit to the number of reportable segments that an entity separately discloses beyond which segment information may become too detailed. Although no precise limit has been determined, as the number of segments that are reportable in accordance with paragraphs 13⁠–⁠18 increases above ten, the entity should consider whether a practical limit has been reached.

Disclosure

Disclosure of entity's operating segments [text block] Disclosure text block 800500, 871100
[Refer:

Basis for Conclusions paragraphs BC43⁠–⁠BC45 for the Board's reasons for not including a lack of competitive harm exemption

FASB’s Basis for Conclusions on SFAS 131 paragraphs 109⁠–⁠111]

20

An entity shall disclose information to enable users [Refer:Conceptual Framework paragraphs 1.2⁠–⁠1.10 and 2.36] 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.

[Refer:FASB’s Basis for Conclusions on SFAS 131 paragraphs 92⁠–⁠97]

21

To give effect to the principle in paragraph 20, an entity shall disclose the following for each period for which a statement of comprehensive income is presented:

(a)

general information as described in paragraph 22;

(b)

information about reported segment profit or loss, including specified revenues and expenses included in reported segment profit or loss, segment assets, segment liabilities and the basis of measurement, as described in paragraphs 23⁠–⁠27; and

(c)

reconciliations of the totals of segment revenues, reported segment profit or loss, segment assets, segment liabilities and other material segment items to corresponding entity amounts as described in paragraph 28.

Reconciliations of the amounts in the statement of financial position for reportable segments [Refer:paragraphs 11⁠–⁠19] to the amounts in the entity’s statement of financial position are required for each date at which a statement of financial position is presented. Information for prior periods shall be restated as described in paragraphs 29 and 30.

General information

22

An entity shall disclose the following general information:

(a)

factors used to identify the entity’s reportable segments, [Refer:paragraphs 11⁠–⁠19] including the basis of organisation (for example, whether management has chosen to organise the entity around differences in products and services, geographical areas, regulatory environments, or a combination of factors and whether operating segments have been aggregated);

Description of factors used to identify entity's reportable segments Disclosure text 871100

(aa)

the judgements made by management in applying the aggregation criteria in paragraph 12. This includes a brief description of the operating segments that have been aggregated in this way and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics; [Refer:Basis for Conclusions paragraphs BC30A and BC30B] and

Description of judgements made by management in applying aggregation criteria for operating segments Disclosure text 871100

(b)

types of products and services from which each reportable segment derives its revenues.

[Refer:Implementation Guidance paragraph IG2]
Description of types of products and services from which each reportable segment derives its revenues Disclosure text 871100

Information about profit or loss, assets and liabilities

[Refer:Implementation Guidance paragraph IG3]

23

An entity shall report a measure of profit or loss for each reportable segment [Refer:paragraphs 11⁠–⁠19]. An entity shall report a measure of total assets and liabilities for each reportable segment if such amounts are regularly provided to the chief operating decision maker [Refer:paragraph 7]. [Refer:Basis for Conclusions paragraphs BC34⁠–⁠BC38 and BC60(b)] An entity shall also disclose the following about each reportable segment if the specified amounts are included in the measure of segment profit or loss reviewed by the chief operating decision maker, or are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss:

(a)

revenues from external customers;

Revenue Disclosure Xduration, credit IAS 1.102 Example
IAS 1.103 Example
IAS 1.82 a Disclosure
IFRS 12.B10 b Example
IFRS 12.B12 b (v) Disclosure
IFRS 5.33 b (i) Disclosure
IFRS 8.28 a Disclosure
IFRS 8.32 Disclosure
IFRS 8.33 a Disclosure
IFRS 8.34 Disclosure 		310000, 320000, 800200, 825700, 825900, 871100

(b)

revenues from transactions with other operating segments of the same entity;

(c)

interest revenue;

Interest income Disclosure Xduration, credit IAS 1.112 c Common practice
IFRS 12.B13 e Disclosure
IFRS 8.28 e Disclosure 		800200, 825700, 871100

(d)

interest expense;

Interest expense Disclosure Xduration, debit IFRS 12.B13 f Disclosure
IFRS 8.28 e Disclosure 		800200, 825700, 836200, 871100

(e)

depreciation and amortisation;

Depreciation and amortisation expense Disclosure Xduration, debit IAS 1.102 Example
IAS 1.104 Disclosure
IAS 1.99 Disclosure
IFRS 12.B13 d Disclosure
IFRS 8.28 e Disclosure 		320000, 800200, 825700, 871100

(f)

material items of income and expense disclosed in accordance with paragraph 97 of IAS 1 Presentation of Financial Statements (as revised in 2007);

(g)

the entity’s interest in the profit or loss of associates and joint ventures accounted for by the equity method;

Share of profit (loss) of associates and joint ventures accounted for using equity method Disclosure Xduration, credit IAS 1.82 c Disclosure
IFRS 8.28 e Disclosure 		310000, 320000, 800200, 836500, 871100

(h)

income tax expense or income; and

Tax expense (income) Disclosure Xduration, debit IAS 1.82 d Disclosure
IAS 12.79 Disclosure
IAS 12.81 c (i) Disclosure
IAS 12.81 c (ii) Disclosure
IAS 26.35 b (viii) Disclosure
IFRS 12.B13 g Disclosure 		310000, 320000, 710000, 825700, 835110, 871100

(i)

material non‑cash items other than depreciation and amortisation.

Other material non-cash items Disclosure Xduration, debit IFRS 8.28 e Disclosure 871100

An entity shall report interest revenue separately from interest expense for each reportable segment unless a majority of the segment’s revenues are from interest and the chief operating decision maker relies primarily on net interest revenue to assess the performance of the segment and make decisions about resources to be allocated to the segment. In that situation, an entity may report that segment’s interest revenue net of its interest expense and disclose that it has done so. [Refer:FASB’s Basis for Conclusions on SFAS 131 paragraph 95]

Assets Disclosure Xinstant, debit IAS 1.55 Disclosure
IFRS 13.93 a Disclosure
IFRS 13.93 b Disclosure
IFRS 13.93 e Disclosure
IFRS 8.28 c Disclosure 		210000, 220000, 800100, 823000, 871100
Disclosure of operating segments [table] Disclosure table 871100
Disclosure of operating segments [text block] Disclosure text block 871100
Explanation of interest income reported net of interest expense Disclosure text 871100
Interest income (expense) Disclosure Xduration, credit IAS 1.85 Common practice
IFRS 8.28 e Disclosure 		800200, 871100
Liabilities Disclosure Xinstant, credit IAS 1.55 Disclosure
IFRS 13.93 a Disclosure
IFRS 13.93 b Disclosure
IFRS 13.93 e Disclosure
IFRS 8.28 d Disclosure 		210000, 220000, 800100, 823000, 871100
Profit (loss) Disclosure Xduration, credit IAS 1.106 d (i) Disclosure
IAS 1.81A a Disclosure
IAS 7.18 b Disclosure
IFRS 1.24 b Disclosure
IFRS 1.32 a (ii) Disclosure
IFRS 12.B10 b Example
Effective 2023-01-01 IFRS 17.113 b Example
IFRS 8.28 b Disclosure 		310000, 320000, 410000, 420000, 520000, 610000, 819100, 825700, 836500, 836600, 871100
Profit (loss) from continuing operations Disclosure Xduration, credit IAS 1.81A a Disclosure
IFRS 12.B12 b (vi) Disclosure
IFRS 8.28 b Disclosure 		310000, 320000, 825700, 871100
Reportable segments [member] Disclosure member IAS 19.138 d Example
IFRS 15.115 Disclosure
Effective 2023-01-01 IFRS 17.96 c Example 		831150, 832410, 834480, 871100
Segment consolidation items [axis] Disclosure axis 871100, 990000
Segments [axis] Disclosure axis IAS 19.138 d Example
IAS 36.130 d (ii) Disclosure
IFRS 15.115 Disclosure
Effective 2023-01-01 IFRS 17.96 c Example 		831150, 832410, 834480, 871100, 990000
Profit (loss) before tax Example Xduration, credit IAS 1.102 Example
IAS 1.103 Example
IFRS 5.33 b (i) Disclosure
IFRS 8.28 b Example 		310000, 320000, 825900, 871100

24

An entity shall disclose the following about each reportable segment [Refer:paragraphs 11⁠–⁠19] if the specified amounts are included in the measure of segment assets reviewed by the chief operating decision maker [Refer:paragraph 7] or are otherwise regularly provided to the chief operating decision maker, even if not included in the measure of segment assets:

(a)

the amount of investment in associates and joint ventures [Refer:IAS 28] accounted for by the equity method, and

Investments accounted for using equity method Disclosure Xinstant, debit IAS 1.54 e Disclosure
IFRS 12.B16 Disclosure 		210000, 220000, 800100, 825700, 871100

(b)

the amounts of additions to non‑current assets1 other than financial instruments, deferred tax assets, [Refer:IAS 12] net defined benefit assets (see IAS 19 Employee Benefits) and rights arising under insurance contracts.

[Refer:Basis for Conclusions paragraphs BC56 and BC57 for the reason the IASB decided not to require separate disclosure of a subtotal of tangible non‑current assets

Basis for Conclusions paragraph BC60(a) for a difference from SFAS 131]

Additions to non-current assets other than financial instruments, deferred tax assets, net defined benefit assets, and rights arising under insurance contracts Disclosure Xduration, debit IFRS 8.28 e Disclosure 871100

Measurement

[Refer:  Basis for Conclusions paragraphs BC24⁠–⁠BC26 FASB’s Basis for Conclusions on SFAS 131 paragraphs 81⁠–⁠91]

25

The amount of each segment item reported shall be the measure reported to the chief operating decision maker [Refer:paragraph 7] for the purposes of making decisions about allocating resources to the segment and assessing its performance. Adjustments and eliminations made in preparing an entity’s financial statements and allocations of revenues, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment’s profit or loss that is used by the chief operating decision maker. Similarly, only those assets and liabilities that are included in the measures of the segment’s assets and segment’s liabilities that are used by the chief operating decision maker shall be reported for that segment. If amounts are allocated to reported segment profit or loss, assets or liabilities, those amounts shall be allocated on a reasonable basis.

26

If the chief operating decision maker [Refer:paragraph 7] uses only one measure of an operating segment’s profit or loss, the segment’s assets or the segment’s liabilities in assessing segment performance and deciding how to allocate resources, segment profit or loss, assets and liabilities shall be reported at those measures. If the chief operating decision maker uses more than one measure of an operating segment’s profit or loss, the segment’s assets or the segment’s liabilities, the reported measures shall be those that management believes are determined in accordance with the measurement principles most consistent with those used in measuring the corresponding amounts in the entity’s financial statements.

27

An entity shall provide an explanation of the measurements of segment profit or loss, segment assets and segment liabilities for each reportable segment. [Refer:Basis for Conclusions paragraph BC25] At a minimum, an entity shall disclose the following:

(a)

the basis of accounting for any transactions between reportable segments.

Description of basis of accounting for transactions between reportable segments Disclosure text 871100

(b)

the nature of any differences between the measurements of the reportable segments’ profits or losses and the entity’s profit or loss before income tax expense or income and discontinued operations (if not apparent from the reconciliations described in paragraph 28). Those differences could include accounting policies and policies for allocation of centrally incurred costs that are necessary for an understanding of the reported segment information.

Description of nature of differences between measurements of reportable segments' profits or losses and entity's profit or loss before income tax expense or income and discontinued operations Disclosure text 871100

(c)

the nature of any differences between the measurements of the reportable segments’ [Refer:paragraphs 11⁠–⁠19] assets and the entity’s assets (if not apparent from the reconciliations described in paragraph 28). Those differences could include accounting policies and policies for allocation of jointly used assets that are necessary for an understanding of the reported segment information.

Description of nature of differences between measurements of reportable segments' assets and entity's assets Disclosure text 871100

(d)

the nature of any differences between the measurements of the reportable segments’ liabilities and the entity’s liabilities (if not apparent from the reconciliations described in paragraph 28). Those differences could include accounting policies and policies for allocation of jointly utilised liabilities that are necessary for an understanding of the reported segment information.

Description of nature of differences between measurements of reportable segments' liabilities and entity's liabilities Disclosure text 871100

(e)

the nature of any changes from prior periods in the measurement methods used to determine reported segment profit or loss and the effect, if any, of those changes on the measure of segment profit or loss.

Description of nature of changes from prior periods in measurement methods used to determine reported segment profit or loss and effect of those changes on measure of segment profit or loss Disclosure text 871100

(f)

the nature and effect of any asymmetrical allocations to reportable segments. For example, an entity might allocate depreciation expense to a segment without allocating the related depreciable assets to that segment.

[Refer:Implementation Guidance paragraph IG2]
Description of nature and effect of any asymmetrical allocations to reportable segments Disclosure text 871100

Reconciliations

[Refer:

Basis for Conclusions paragraphs BC25 and BC39⁠–⁠BC42

Implementation Guidance paragraph IG4]

28

An entity shall provide reconciliations of all of the following:

(a)

the total of the reportable segments’ [Refer:paragraphs 11⁠–⁠19] revenues to the entity’s revenue.

Revenue Disclosure Xduration, credit IAS 1.102 Example
IAS 1.103 Example
IAS 1.82 a Disclosure
IFRS 12.B10 b Example
IFRS 12.B12 b (v) Disclosure
IFRS 5.33 b (i) Disclosure
IFRS 8.23 a Disclosure
IFRS 8.32 Disclosure
IFRS 8.33 a Disclosure
IFRS 8.34 Disclosure 		310000, 320000, 800200, 825700, 825900, 871100

(b)

the total of the reportable segments’ measures of profit or loss to the entity’s profit or loss before tax expense (tax income) and discontinued operations. However, if an entity allocates to reportable segments items such as tax expense (tax income), the entity may reconcile the total of the segments’ measures of profit or loss to the entity’s profit or loss after those items.

Profit (loss) Disclosure Xduration, credit IAS 1.106 d (i) Disclosure
IAS 1.81A a Disclosure
IAS 7.18 b Disclosure
IFRS 1.24 b Disclosure
IFRS 1.32 a (ii) Disclosure
IFRS 12.B10 b Example
Effective 2023-01-01 IFRS 17.113 b Example
IFRS 8.23 Disclosure 		310000, 320000, 410000, 420000, 520000, 610000, 819100, 825700, 836500, 836600, 871100
Profit (loss) from continuing operations Disclosure Xduration, credit IAS 1.81A a Disclosure
IFRS 12.B12 b (vi) Disclosure
IFRS 8.23 Disclosure 		310000, 320000, 825700, 871100
Profit (loss) before tax Example Xduration, credit IAS 1.102 Example
IAS 1.103 Example
IFRS 5.33 b (i) Disclosure
IFRS 8.23 Example 		310000, 320000, 825900, 871100

(c)

the total of the reportable segments’ assets to the entity’s assets if the segment assets are reported in accordance with paragraph 23. [Refer:Basis for Conclusions paragraph BC35B]

Assets Disclosure Xinstant, debit IAS 1.55 Disclosure
IFRS 13.93 a Disclosure
IFRS 13.93 b Disclosure
IFRS 13.93 e Disclosure
IFRS 8.23 Disclosure 		210000, 220000, 800100, 823000, 871100

(d)

the total of the reportable segments’ liabilities to the entity’s liabilities if segment liabilities are reported in accordance with paragraph 23.

Liabilities Disclosure Xinstant, credit IAS 1.55 Disclosure
IFRS 13.93 a Disclosure
IFRS 13.93 b Disclosure
IFRS 13.93 e Disclosure
IFRS 8.23 Disclosure 		210000, 220000, 800100, 823000, 871100

(e)

the total of the reportable segments’ amounts for every other material item of information disclosed to the corresponding amount for the entity.

Additions to non-current assets other than financial instruments, deferred tax assets, net defined benefit assets, and rights arising under insurance contracts Disclosure Xduration, debit IFRS 8.24 b Disclosure 871100
Depreciation and amortisation expense Disclosure Xduration, debit IAS 1.102 Example
IAS 1.104 Disclosure
IAS 1.99 Disclosure
IFRS 12.B13 d Disclosure
IFRS 8.23 e Disclosure 		320000, 800200, 825700, 871100
Interest expense Disclosure Xduration, debit IFRS 12.B13 f Disclosure
IFRS 8.23 d Disclosure 		800200, 825700, 836200, 871100
Interest income Disclosure Xduration, credit IAS 1.112 c Common practice
IFRS 12.B13 e Disclosure
IFRS 8.23 c Disclosure 		800200, 825700, 871100
Interest income (expense) Disclosure Xduration, credit IAS 1.85 Common practice
IFRS 8.23 Disclosure 		800200, 871100
Other material non-cash items Disclosure Xduration, debit IFRS 8.23 i Disclosure 871100
Share of profit (loss) of associates and joint ventures accounted for using equity method Disclosure Xduration, credit IAS 1.82 c Disclosure
IFRS 8.23 g Disclosure 		310000, 320000, 800200, 836500, 871100

All material reconciling items shall be separately identified and described. For example, the amount of each material adjustment needed to reconcile reportable segment profit or loss to the entity’s profit or loss arising from different accounting policies shall be separately identified and described.

Elimination of intersegment amounts [member] Example member IFRS 8.IG4 Example 871100
Unallocated amounts [member] Example member IFRS 8.IG4 Example 871100
Description of material reconciling items Disclosure text 871100
Entity's total for segment consolidation items [member] Disclosure member 871100, 990000
Material reconciling items [member] Disclosure member 871100
Operating segments [member] Disclosure member 871100
Segments [member] Disclosure member IAS 19.138 d Example
IAS 36.130 d (ii) Disclosure
IFRS 15.115 Disclosure
Effective 2023-01-01 IFRS 17.96 c Example 		831150, 832410, 834480, 871100, 990000

Restatement of previously reported information

[Refer:FASB’s Basis for Conclusions on SFAS 131 paragraph 100]

29

If an entity changes the structure of its internal organisation in a manner that causes the composition of its reportable segments [Refer:paragraphs 11⁠–⁠19] to change, the corresponding information for earlier periods, including interim periods, shall be restated unless the information is not available and the cost to develop it would be excessive. The determination of whether the information is not available and the cost to develop it would be excessive shall be made for each individual item of disclosure. Following a change in the composition of its reportable segments, an entity shall disclose whether it has restated the corresponding items of segment information for earlier periods.

30

If an entity has changed the structure of its internal organisation in a manner that causes the composition of its reportable segments [Refer:paragraphs 11⁠–⁠19] to change and if segment information for earlier periods, including interim periods, is not restated to reflect the change, the entity shall disclose in the year in which the change occurs segment information for the current period on both the old basis and the new basis of segmentation, unless the necessary information is not available and the cost to develop it would be excessive.

Entity‑wide disclosures

31

Paragraphs 32⁠–⁠34 apply to all entities subject to this IFRS including those entities that have a single reportable segment [Refer:paragraphs 11⁠–⁠19]. Some entities’ business activities are not organised on the basis of differences in related products and services or differences in geographical areas of operations. Such an entity’s reportable segments may report revenues from a broad range of essentially different products and services, or more than one of its reportable segments may provide essentially the same products and services. Similarly, an entity’s reportable segments may hold assets in different geographical areas and report revenues from customers in different geographical areas, or more than one of its reportable segments may operate in the same geographical area. Information required by paragraphs 32⁠–⁠34 shall be provided only if it is not provided as part of the reportable segment information required by this IFRS.

[Refer:FASB’s Basis for Conclusions on SFAS 131 paragraphs 101 and 102]

Information about products and services

[Refer:FASB’s Basis for Conclusions on SFAS 131 paragraph 103]

32

An entity shall report the revenues from external customers for each product and service, or each group of similar products and services, unless the necessary information is not available and the cost to develop it would be excessive [Refer:Basis for Conclusions paragraphs BC46 and BC47], in which case that fact shall be disclosed. The amounts of revenues reported shall be based on the financial information used to produce the entity’s financial statements.

Disclosure of products and services [table] Disclosure table 871100
Disclosure of products and services [text block] Disclosure text block 871100
Explanation of why revenues from external customers for each product and service, or each group of similar products and services, are not reported Disclosure text IFRS 8.33 Disclosure 871100
Products and services [axis] Disclosure axis IFRS 15.B89 a Example 831150, 871100, 990000
Products and services [member] Disclosure member IFRS 15.B89 a Example 831150, 871100, 990000
Revenue Disclosure Xduration, credit IAS 1.102 Example
IAS 1.103 Example
IAS 1.82 a Disclosure
IFRS 12.B10 b Example
IFRS 12.B12 b (v) Disclosure
IFRS 5.33 b (i) Disclosure
IFRS 8.23 a Disclosure
IFRS 8.28 a Disclosure
IFRS 8.33 a Disclosure
IFRS 8.34 Disclosure 		310000, 320000, 800200, 825700, 825900, 871100

Information about geographical areas

[Refer:Basis for Conclusions paragraphs BC51⁠–⁠BC53 FASB’s Basis for Conclusions on SFAS 131 paragraphs 104⁠–⁠107]

33

An entity shall report the following geographical information, unless the necessary information is not available and the cost to develop it would be excessive [Refer:Basis for Conclusions paragraphs BC46 and BC47]:

(a)

revenues from external customers (i) attributed to the entity’s country of domicile [Refer:Basis for Conclusions paragraphs BC54 and BC55] and (ii) attributed to all foreign countries in total from which the entity derives revenues. If revenues from external customers attributed to an individual foreign country are material, those revenues shall be disclosed separately. An entity shall disclose the basis for attributing revenues from external customers to individual countries.

Country of domicile [member] Disclosure member IFRS 8.33 b Disclosure 871100
Description of basis for attributing revenues from external customers to individual countries Disclosure text 871100
Foreign countries [member] Disclosure member IFRS 8.33 b Disclosure 871100
Revenue Disclosure Xduration, credit IAS 1.102 Example
IAS 1.103 Example
IAS 1.82 a Disclosure
IFRS 12.B10 b Example
IFRS 12.B12 b (v) Disclosure
IFRS 5.33 b (i) Disclosure
IFRS 8.23 a Disclosure
IFRS 8.28 a Disclosure
IFRS 8.32 Disclosure
IFRS 8.34 Disclosure 		310000, 320000, 800200, 825700, 825900, 871100

(b)

non‑current assets2 [Refer:Basis for Conclusions paragraphs BC56, BC57 and BC60(a)] other than financial instruments, deferred tax assets, post‑employment benefit assets, and rights arising under insurance contracts (i) located in the entity’s country of domicile and (ii) located in all foreign countries in total in which the entity holds assets. If assets in an individual foreign country are material, those assets shall be disclosed separately.

Country of domicile [member] Disclosure member IFRS 8.33 a Disclosure 871100
Foreign countries [member] Disclosure member IFRS 8.33 a Disclosure 871100
Non-current assets other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts Disclosure Xinstant, debit 871100

The amounts reported shall be based on the financial information that is used to produce the entity’s financial statements. If the necessary information is not available and the cost to develop it would be excessive, [Refer:Basis for Conclusions paragraphs BC46 and BC47] that fact shall be disclosed. An entity may provide, in addition to the information required by this paragraph, subtotals of geographical information about groups of countries.

[Refer:Implementation Guidance paragraph IG5]
[Link toBasis for Conclusions paragraphs BC48⁠–⁠BC50 for the IASB’s reasons for not requiring country‑by‑country disclosures]
Disclosure of geographical areas [table] Disclosure table 871100
Disclosure of geographical areas [text block] Disclosure text block 871100
Explanation of why revenues from external customers for each product and service, or each group of similar products and services, are not reported Disclosure text IFRS 8.32 Disclosure 871100
Geographical areas [axis] Disclosure axis IAS 19.138 a Example
IFRS 15.B89 b Example
Effective 2023-01-01 IFRS 17.96 b Example 		831150, 834480, 871100, 990000
Geographical areas [member] Disclosure member IAS 19.138 a Example
IFRS 15.B89 b Example
Effective 2023-01-01 IFRS 17.96 b Example 		831150, 834480, 871100, 990000

Information about major customers

34

An entity shall provide information about the extent of its reliance on its major customers. If revenues from transactions with a single external customer amount to 10 per cent or more of an entity’s revenues, [Refer:FASB's Basis for Conclusions on SFAS 131 paragraph 108] the entity shall disclose that fact, the total amount of revenues from each such customer, and the identity of the segment or segments reporting the revenues. The entity need not disclose the identity of a major customer or the amount of revenues that each segment reports from that customer. For the purposes of this IFRS, a group of entities known to a reporting entity to be under common control shall be considered a single customer. However, judgement is required to assess whether a government (including government agencies and similar bodies whether local, national or international) and entities known to the reporting entity to be under the control of that government are considered a single customer. In assessing this, the reporting entity shall consider the extent of economic integration between those entities.

[Refer:

Basis for Conclusions paragraph BC58

Implementation Guidance paragraph IG6

IAS 24 Basis for Conclusions paragraph BC49(c)]

Customers [member] Disclosure member 871100, 990000
Disclosure of major customers [table] Disclosure table 871100
Disclosure of major customers [text block] Disclosure text block 871100
Government [member] Disclosure member 871100
Information about major customers Disclosure text 871100
Major customers [axis] Disclosure axis 871100, 990000
Revenue Disclosure Xduration, credit IAS 1.102 Example
IAS 1.103 Example
IAS 1.82 a Disclosure
IFRS 12.B10 b Example
IFRS 12.B12 b (v) Disclosure
IFRS 5.33 b (i) Disclosure
IFRS 8.23 a Disclosure
IFRS 8.28 a Disclosure
IFRS 8.32 Disclosure
IFRS 8.33 a Disclosure 		310000, 320000, 800200, 825700, 825900, 871100
Percentage of entity's revenue Common practice X.XX 871100

Transition and effective date

[Refer:Basis for Conclusions paragraphs BC61 and BC62]

35

An entity shall apply this IFRS in its annual financial statements for periods beginning on or after 1 January 2009. Earlier application is permitted. If an entity applies this IFRS in its financial statements for a period before 1 January 2009, it shall disclose that fact.

35A

Paragraph 23 was amended by Improvements to IFRSs issued in April 2009. An entity shall apply that amendment for annual periods beginning on or after 1 January 2010. Earlier application is permitted. If an entity applies the amendment for an earlier period it shall disclose that fact.

36

Segment information for prior years that is reported as comparative information for the initial year of application (including application of the amendment to paragraph 23 made in April 2009) shall be restated to conform to the requirements of this IFRS, unless the necessary information is not available and the cost to develop it would be excessive.

36A

IAS 1 (as revised in 2007) amended the terminology used throughout IFRSs. In addition it amended paragraph 23(f). An entity shall apply those amendments for annual periods beginning on or after 1 January 2009. If an entity applies IAS 1 (revised 2007) for an earlier period, the amendments shall be applied for that earlier period.

36B

IAS 24 Related Party Disclosures (as revised in 2009) amended paragraph 34 for annual periods beginning on or after 1 January 2011. If an entity applies IAS 24 (revised 2009) for an earlier period, it shall apply the amendment to paragraph 34 for that earlier period.

36C

Annual Improvements to IFRSs 2010⁠–⁠2012 Cycle, issued in December 2013, amended paragraphs 22 and 28. An entity shall apply those amendments for annual periods beginning on or after 1 July 2014. Earlier application is permitted. If an entity applies those amendments for an earlier period it shall disclose that fact.

Withdrawal of IAS 14

37

This IFRS supersedes IAS 14 Segment Reporting.

Appendices

Appendix ADefined term

This appendix is an integral part of the IFRS.

operating segment

An operating segment is a component of an entity:

(a)

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),

(b)

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

(c)

for which discrete financial information is available.

[Link toparagraph 5]

Appendix BAmendments to other IFRSs

The amendments in this appendix shall be applied for annual periods beginning on or after 1 January 2009. If an entity applies this IFRS for an earlier period, these amendments shall be applied for that earlier period. In the amended paragraphs, new text is underlined and deleted text is struck through.

* * * * *

The amendments contained in this appendix when this IFRS was issued in 2006 have been incorporated into the text of the relevant IFRSs in this volume.

Board Approvals

Approval by the Board of IFRS 8 issued in November 2006

International Financial Reporting Standard 8 Operating Segments was approved for issue by eleven of the thirteen members of the International Accounting Standards Board. Messrs Gélard and Leisenring dissented. Their dissenting opinions are set out after the Basis for Conclusions.

Sir David TweedieChairman
Thomas E JonesVice‑Chairman
Mary E Barth
Hans‑Georg Bruns
Anthony T Cope
Jan Engström
Robert P Garnett
Gilbert Gélard
James J Leisenring
Warren J McGregor
Patricia L O’Malley
John T Smith
Tatsumi Yamada

Footnotes

1

For assets classified according to a liquidity presentation, non‑current assets are assets that include amounts expected to be recovered more than twelve months after the reporting period. (back)

2

For assets classified according to a liquidity presentation, non‑current assets are assets that include amounts expected to be recovered more than twelve months after the reporting period. (back)