Segment Reporting in IFRS 8 involves presenting disaggregated financial information in the notes to support an understanding of the aggregated financial information in the financial statements.

IFRS 8 applications and requirements –

IFRS 8 applies to any entity that has publicly traded debts or equity instruments on issue or that files, or is in the process of filing, its financial statements with a regulatory body for the purpose of issuing instruments in a public market.

It requires an entity to disclose-

1. Factors that are used to identify the entities reportable segments including basis of organization. For example, differences in the product and services, geographical areas, regulatory environments, or some other combinations.
2. Judgements made by management if operating segments have been aggregated.
3. Types of products and services that each reportable segment derives its revenues from.

What is an operating segment?

Operating segment is a component of an entity that:

1. Undertakes business activities from which it may generate revenues and incur expenses
2. Has its operating result regularly reviewed by chief operating decision maker within the entity, such as the general manager, managing director or chief operating officer (CEO)
3. Has a discreet financial information available

Typical disclosure requirements for each reportable segment under IFRS 8:

1. A measure of profit or loss
2. A measure of total assets and liabilities
3. Revenues from external customers
4. Revenues from transactions with transactions from other operating segments
5. Interest revenue
6. Interest expense
7. Depreciation and Amortization
8. Material items of income and expense
9. The interest in profit or loss of associates and join ventures accounted for by the equity method
10. Income tax expense of income
11. Material non-cash items other than depreciation and amortization