F2 - M5 - Segment Reporting

Question 1

What is the objective of segment reporting?

Answer 1

To provide information on the business activities and economic environment of a company to help the users of the financial statements

• Better understand entity performance
• Better assess its prospects for future cash flows; and
• Make more informed judgments about the entity as a whole

Question 2

Is an entity required to report segment cash flows?

Answer 2

No. Only segment profit or loss, segment assets, and certain related items

Question 3

Treatment for disclosure of segment liabilities

Answer 3

GAAP - No disclose required

IFRS - Disclosure of segment liabilities is required if such measure is regularly provided to the chief operating decision maker (CODM)