IFRS-8 Operating Segments

Question 1

Define Operating Segment (3)
Extra disclosure (75%)

Answer 1

An operating segment is a component of an entity:

• That engages in business activities from which it may earn revenues and expenses
• Operating activity regularly reviewed by chief operating decision maker for resource allocation purposes and performance analysis
• discrete financial information is available
• At least 75% of the total segment revenue must be reported. Keep adding segments until we get this.

Question 2

Reporting thresholds (3) - When to report.

Answer 2

• Revenue (total) is 10% or over segment totals
• Profit/loss is 10% or over segment total (separate into Profit and losses)
• Assets are 10% or over combined assets.