IFRS 8, "Operating Segments,"

Here are the key aspects of IFRS 8:

1. Scope: IFRS 8 applies to entities that have publicly traded securities or are in the process of issuing securities in public markets. It requires such entities to disclose information about their operating segments, products and services, geographical areas, and major customers.

2. Identification of Operating Segments: Operating segments are components of an entity that engage in business activities from which they may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity’s chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.

3. Reportable Segments: Not all operating segments are reportable. Segments are reportable if their revenue, profit or loss, assets, or other factors are significant relative to the entity as a whole. IFRS 8 sets quantitative thresholds for determining whether an operating segment is reportable.

4. Measurement: The standard requires segment information to be reported in a manner that is consistent with internal management reporting. Segment profit or loss, segment assets, and segment liabilities should be measured on the same basis as used by the CODM for making decisions.

5. Disclosure Requirements: Entities are required to disclose general information about how the operating segments are determined and information about the reported segment profit or loss, including specified revenues and expenses included in segment profit or loss, segment assets, segment liabilities, and the basis of measurement.

6. Geographical Information: Entities must disclose information about the geographical areas in which they operate, including revenues from external customers attributed to the entity’s country of domicile and to foreign countries.

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