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OPERATING SEGMENTS
Introduction – IFRS 8
• IFRS 8 sets out the requirements for identification and
disclosure of operating segments.
• Many major entities operate in a variety of business units
that provide groups of products and services and also
operate in different geographical areas.
• This situation exposes an entity to different business risks
and investors can expect different returns from different
business units.
• Therefore the core principle according to IFRS 8.1 is that 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.
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