Page 252 - F1 Integrated Workbook STUDENT 2018

Chapter 14

IFRS 8 Operating Segments

4.1 Overview

IFRS 8 Operating Segments requires an entity to disclose segment information to
enable users of the financial statements to evaluate the nature and financial effect of
business activities in which it engages and the economic environments in which it
operates. Many entities produce a wide range of products and services, often in
different countries. Further information on how the overall results of entities are
made up from each of these operating segments will help the users of the financial
statements.

IFRS 8 Operating Segments defines an operating segment as a component of an
entity:

 ‘that engages in business activities from which it earns revenues and incurs
expenses

 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

 for which discrete financial information is available’. (IFRS 8, para 2)

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