Segment Reporting

Kuliah Umum Series 2
Akutansi Kewangan:

IFRS 8: Operating Segments

Kamarul Baraini Keliwon, PhD,
Associate CPA

| 27 Disember 2022



Who should prepare?

01 02

an entity a group with a parent

1. whose debt or equity instruments are traded in a public market, or

2. that files, or is in the process of filing, its (consolidated) financial
statements with a securities commission or other regulatory

organization for the purpose of issuing any class of instruments in a
public market

Who should prepare?

When both separate and consolidated financial statements
for the parent are presented in a single financial report,

segment information need be presented only on the basis of
the consolidated financial statements [IFRS 8.4]

Operating segments

• a component of an entity: [IFRS8.2]

a) that engages in business activities from which it may earn
revenues and incur expenses

b) whose operating results are reviewed regularly by the
chief operating decision maker to make decisions about
resources to be allocated to the segment and assess its
performance and

c) for which discrete financial information is available

IFRS18.21
IFRS18.22(b) types of products and services from which each
reportable segment derives its revenues.

Reportable segments

• operating segments or aggregations of operating segments that meet
specified criteria: [IFRS 8.13]

a) its reported revenue, from both external customers and intersegment sales or
transfers, is 10% or more of the combined revenue, internal and external, of all
operating segments, or

b) the absolute measure of its reported profit or loss is 10% or more of the greater, in
absolute amount, of (i) the combined reported profit of all operating segments that
did not report a loss and (ii) the combined reported loss of all operating segments
that reported a loss, or

c) its assets are 10% or more of the combined assets of all operating segments.

Reportable segments

• Additional factors:

a) If the total external revenue reported by operating segments constitutes
less than 75% of the entity's revenue, additional operating segments must
be identified as reportable segments until at least 75% of the entity's
revenue is included in reportable segments [IFRS 8.15].

b) Operating segments that do not meet the quantitative thresholds can be
combined with other similar segments to produce a reportable segment
only if the operating segments have similar economic characteristics and
share the aggregation criteria [IFRS 8.14].

Reportable segments

• Aggregation criteria [IFRS8.12] :

a) the nature of the products and services;
b) the nature of the production processes;
c) the type or class of customer for their products and services;
d) the methods used to distribute their products or provide their services;

and
e) if applicable, the nature of the regulatory environment, for example,

banking, insurance or public utilities.

Reportable segments

Revenue test: .10 × €2,150 = €215; C, D, and E meet this test.
Operating profit (loss) test: .10 × €90 = €9; A, C, D, and E meet this test.

Identifiable assets tests: .10 × €970 = €97; C, D, and E meet this test.

Reportable segments

Reportable
segments

75% of combined sales test: 75% × €2,150 = €1,612.50.
The sales of A, C, D, and E total €2,000 (€100 + €700 + €300 + €900); therefore, the 75 test is
met.%

Disclosure

• General information about operating segments [IFRS8.21(a)].
• Segment profit and loss and related information [IFRS8.21(b)].
• Segment assets and liabilities [IFRS8.21(b)].
• Reconciliations [IFRS8.21(c)].
• Information about products and services [IFRS8.32] and

geographic areas [IFRS8.33].
• Major customers [IFRS8.34].

IFRS18.23(a)
IFRS18.23(b)

IFRS18.21(b)
IFRS18.23(g)

IFRS18.23(e)

IFRS
18.23(f)

IFRS 18.21(b)

IFRS18.23(a)
IFRS18.23(b)
IFRS18.21(b)
IFRS18.23(g)

IFRS18.23(e)

IFRS 18.33
IFRS18.23(a)

IFRS18.23(b)

IFRS18.21(b)
IFRS18.23(g)

IFRS18.23(e)

Thank you

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