International Financial Reporting Standard 8
IFRS 8 was issued in November 2006 and this version includes amendments resulting from IFRSs issued up to 31 December 2008. Its effective date is 1 January 2009. IAS 14 Segment Reporting was issued by the International Accounting Standards Committee in August 1997. It replaced IAS 14 Reporting Financial Information bySegment (issued in August 1981 and reformatted in 1994). In April 2001 the International Accounting Standards Board (IASB) resolved that all Standards and Interpretations issued under previous Constitutions continued to be applicable unless and until they were amended or withdrawn. IAS 14 was subsequently amended by the following IFRSs: • • • • • • • IAS 2 Inventories (as revised in December 2003)IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (issued December 2003) IAS 16 Property, Plant and Equipment (as revised in December 2003) IFRS 3 Business Combinations (issued March 2004) IFRS 5 Non-current Assets Held for Sale and Discontinued Operations (issued March 2004) IFRS 7 Financial Instruments: Disclosures (issued August 2005) IAS 1 Presentation of FinancialStatements (as revised in September 2007).*
In November 2006 the IASB issued IFRS 8 Operating Segments, which replaced IAS 14. IFRS 8 has been amended by IAS 1 Presentation of Financial Statements (as revised in September 2007).*
effective date 1 January 2009 (earlier application permitted)
INTERNATIONALFINANCIAL REPORTING STANDARD 8 OPERATING SEGMENTS
CORE PRINCIPLE SCOPE OPERATING SEGMENTS REPORTABLE SEGMENTS Aggregation criteria Quantitative thresholds DISCLOSURE General information Information about profit or loss, assets and liabilities MEASUREMENT Reconciliations Restatement of previously reported information ENTITY-WIDE DISCLOSURES Information about products and services Information aboutgeographical areas Information about major customers TRANSITION AND EFFECTIVE DATE WITHDRAWAL OF IAS 14 APPENDICES A B Defined term Amendments to other IFRSs 1 2–4 5–10 11–19 12 13–19 20–24 22 23–24 25–30 28 29–30 31–34 32 33 34 35–36A 37
APPROVAL BY THE BOARD OF IFRS 8 ISSUED IN NOVEMBER 2006 BASIS FOR CONCLUSIONS DISSENTING OPINIONS IMPLEMENTATION GUIDANCE
IFRS 8International 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 International Financial Reporting Standards and the Framework for the Preparation and Presentation of Financial Statements. 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.
Reasons for issuing the IFRS
IN1International Financial Reporting Standard 8 Operating Segments sets out requirements for disclosure of information about an entity’s operating segments and also about the entity’s products and services, the geographical areas in which it operates, and its major customers. Achieving convergence of accounting standards around the world is one of the prime objectives of the International Accounting StandardsBoard. In pursuit of that objective, the Board and the Financial Accounting Standards Board (FASB) in the United States have undertaken a joint short-term project with the objective of reducing differences between International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (US GAAP) that are capable of resolution in a relatively short time and can be...