IFRS 08

Question 1

What is an Operating Segment?

Answer 1

An operating segment is a component of an entity:
- That engages in business activities from which it may earn revenues and incur expenses( including revenues and expenses relating to transactions with other components of the same entity)
-whose operating results are regularly reviewed by entity’s Chief Operating Decision Maker(CODM) to made decisions about resources to be allocated to the segment and assesses its performance.
- For which discrete financial information is available.

Question 2

What is Reportable Segment?

Answer 2

Any entity is required to report separate information about each reportable segment.
A segment is a reportable segment if:
- if it has been identified as operating segment (definition) or results from aggregating two or more of those segments, and;
- exceeds the 10% quantitative threshold.

Question 3

What is “Quantitative Threshold”?

Answer 3

It includes any of the followings:
- If reported revenue( internal + external) exceeds 10% or more of combined revenues of all operating segments.
-The absolute amount of its reported profit or loss is 10% or more of the greater of;
1. The combined profits of all the operating segments.
2. The combined loss of all operating segments.
3. The assets are 10% or more of all entity’s assets.