Ifrs at A Glance IFRS 8 Operating Segments: WWW - Bdo.global

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This publication has been carefully prepared, but it has been written

in
general terms and should be seen as broad guidance only. The
publication cannot be relied upon to cover specific situations and
you should not act, or refrain from acting, upon the information
contained therein without obtaining specific professional advice.
Please contact your respective BDO member firm to discuss these
matters in the context of your particular circumstances. Neither
BDO IFR Advisory Limited, Brussels Worldwide Services BV, BDO
International Limited and/or BDO member firms, nor their
respective partners, employees and/or agents accept or assume
any liability or duty of care for any loss arising from any action taken

IFRS AT A GLANCE
or not
taken by anyone in reliance on the information in this publication or
for any decision based on it.

IFRS 8 Operating Segments


Service provision within the international BDO network of
independent member firms (‘the BDO network’) in connection with
IFRS (comprising International Financial Reporting Standards,
International Accounting Standards, and Interpretations developed
by the IFRS Interpretations Committee and the former Standing
Interpretations Committee), and other documents, as issued by the
International Accounting Standards Board, is provided by BDO IFR
Advisory Limited, a UK registered company limited
by guarantee. Service provision within the BDO network is
coordinated by Brussels Worldwide Services BV, a limited liability
company incorporated in Belgium with its statutory seat in
Zaventem.

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BDO network), Brussels Worldwide Services BV, BDO IFR
Advisory Limited and the member firms is a separate legal entity
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relationship or a partnership between BDO International Limited,
Brussels Worldwide Services BV, BDO IFR Advisory Limited
and/or the member firms of the BDO network.

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BDO member firms.

© 2020 BDO IFR Advisory Limited, a UK registered company


limited by guarantee. All rights reserved.

www.bdo.global
12

IFRS 8 Operating Segments


Effective Date
Periods beginning on or after 1 January 2009

CORE PRINCIPLE SCOPE


An entity is required to disclose information to enable users of its financial statements to evaluate the nature and financial IFRS 8 applies to the annual and interim financial statements of an entity. It applies to the separate
effects of the business activities in which it engages and the economic environments in which it operates. or individual financial statements of an entity and to the consolidated financial statements of a group
with a parent:
 Whose debt or equity instruments are traded in a public market; or
 That files, or is in the process of filing, its financial statements with a securities commission or
QUANTITATIVE THRESHOLDS OPERATING SEGMENTS other regulatory organisation for the purpose of issuing any class of instruments in a public
market.
 Information is required to be disclosed separately about an An operating segment is a component of an entity:
operating segment that meets any of the following quantitative
 That engages in business activities from which it
thresholds:
may earn revenues and incur expenses DISCLOSURE
 Its reported revenue, including both sales to external
 Whose operating results are regularly reviewed
customers and intersegment sales or transfers, is 10 per Major disclosures include:
by the entity’s chief operating decision maker
cent or more of the combined revenue, internal and  An entity shall report a measure of profit or loss and total assets for each reportable segment –
(CODM) to make decisions about resources to be
external, of all operating segments only if this information is regularly provided to the CODM
Specific allocated to the segment and assess its
 Thequantitative
absolute amountdisclosure requirements:
of its reported profit or loss is 10 per  Other disclosures are required regarding each reportable segment if specific amounts are reported
performance
cent or more of the greater, in absolute amount, of: to the CODM
 For which discrete financial information is
o The combined reported profit of all operating  Judgements made by management for the purposes of aggregation of operating segments
available.
segments that did not report a loss; and - Description of the operating segments that have been aggregated
o The combined reported loss of all operating segments
that reported a loss.
- Economic indicators considered in determining that segments share similar economic
characteristics.
 Its assets are 10 per cent or more of the combined assets of REPORTABLE SEGMENTS  Operating segment information disclosed is not necessarily IFRS compliant information, as it is
all operating segments.
Information is required to be disclosed separately based on amounts reported internally
 If the total external revenue reported by operating segments
about each identified operating segment and  Operating segment information disclosed must be reconciled back to IFRS amounts disclosed in
constitutes less than 75% of the total revenue, additional
aggregated operating segments that exceed the the financial statements
operating segments shall be identified as reportable segments
quantitative thresholds.  An entity reports the following geographical information if available:
until at least 75% of the entity’s revenue is included in
reportable segments. - Revenues from external customers, both attributed to the entity’s country of domicile and
attributed to all foreign countries
- Non-current assets (except financial instruments, deferred tax assets, post-employment
benefit assets and rights arising under insurance contracts) located both in the entity’s
AGGREGATION CRITERIA DEFINITION OF THE CODM country of domicile and in foreign countries
Two or more operating segments may be aggregated if the The CODM is the individual or group of individuals - The amounts reported are based on the financial information that is used to produce the
segments are similar in each of the following respects: who is/are responsible for strategic decision making entity’s financial statements.
regarding the entity. That is, the CODM allocates  An entity provides information about the extent of its reliance on its major customers. If revenues
 The nature of the products and services resources and assess the performance of the from transactions with a single external customer amount to 10% or more of an entity’s revenues,
 The nature of the production processes operating segments. the entity discloses that fact.
 The type or class of customer for their products and services
 The methods used to distribute their products or provide their
services
 The nature of the regulatory environment.
Contact
For further information about how BDO can assist you and your organisation, please get in touch with one of our key
contacts listed below.

Alternatively, please visit www.bdo.global where you can find full lists of regional and country contacts.

EUROPE

Anne Catherine Farlay France [email protected]


Jens Freiberg Germany [email protected]
Teresa Morahan Ireland [email protected]
Ehud Greenberg Israel [email protected]
Stefano Bianchi Italy [email protected]
Roald Beumer Netherlands [email protected]
Reidar Jensen Norway [email protected]
Leonid Sidelkovskiy Russia [email protected]
David Cabaleiro Spain [email protected]
Beat Rüfenacht Switzerland [email protected]
Moses Serfaty United Kingdom [email protected]

ASIA PACIFIC

Aletta Boshoff Australia [email protected]


Hu Jian Fei China [email protected]
Fanny Hsiang Hong Kong [email protected]
Pradeep Suresh India [email protected]
Khoon Yeow Tan Malaysia [email protected]

LATIN AMERICA

Marcello Canetti Argentina [email protected]


Victor Ramirez Colombia [email protected]
Ernesto Bartesaghi Uruguay [email protected]

NORTH AMERICA & CARIBBEAN

Armand Capisciolto Canada [email protected]


Wendy Hambleton USA [email protected]

MIDDLE EAST

Arshad Gadit Bahrain [email protected]


Antoine Gholam Lebanon [email protected]

SUB SAHARAN AFRICA

Theunis Schoeman South Africa [email protected]


This publication has been carefully prepared, but it has been
written in general terms and should be seen as broad guidance
only. The publication cannot be relied upon to cover specific
situations and you should not act, or refrain from acting, upon
the information contained therein without obtaining specific
professional advice. Please contact your respective BDO member
firm to discuss these matters in the context of your particular
circumstances. Neither BDO IFR Advisory Limited, Brussels
Worldwide Services BV, BDO International Limited and/or BDO
member firms, nor their respective partners, employees and/or
agents accept or assume any liability or duty of care for any loss
arising from any action taken or not
taken by anyone in reliance on the information in this publication or
for any decision based on it.

Service provision within the international BDO network of


independent member firms (‘the BDO network’) in connection with
IFRS (comprising International Financial Reporting Standards,
International Accounting Standards, and Interpretations developed
by the IFRS Interpretations Committee and the former Standing
Interpretations Committee), and other documents, as issued by the
International Accounting Standards Board, is provided by BDO IFR
Advisory Limited, a UK registered company limited
by guarantee. Service provision within the BDO network is
coordinated by Brussels Worldwide Services BV, a limited liability
company incorporated in Belgium with its statutory seat in
Zaventem.

Each of BDO International Limited (the governing entity of the


BDO network), Brussels Worldwide Services BV, BDO IFR
Advisory Limited and the member firms is a separate legal
entity and has no liability for another such entity’s acts or
omissions. Nothing in the arrangements or
rules of the BDO network shall constitute or imply an agency
relationship or a partnership between BDO International Limited,
Brussels Worldwide Services BV, BDO IFR Advisory Limited and/or
the member firms of the BDO network.

BDO is the brand name for the BDO network and for each of
the BDO member firms.

© 2020 BDO IFR Advisory Limited, a UK registered company


limited by guarantee. All rights reserved.

www.bdo.global

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