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IFRS guide

Operating segments

Andrew Archer Andrew Archer

IFRS 8/AASB8: Applying IFRS 8 in Practice

The IASB published IFRS 8 Operating Segments (AASB 8 is the Australian
equivalent ) which applies to listed entities and those in the process of
listing for annual reporting period commencing on or after 1 January 2009.

IFRS 8 requires much of the management segmental information used
internally to be published externally so that investors, analysts and other
users of entities' financial statements can review an entity's operations from
the same perspective as management. This is a radically different approach from
the previous segment reporting standard and has the potential to highlight
sensitive information to competitors as well as other users of financial
statements. This guide will help management to understand the requirements of
IFRS 8 (AASB 8) and consider what the required disclosures say about the way
they manage their business.