IFRS 8 for DFS

Steve Collings
Steve Collings Registered Posts: 997 Epic contributor 🐘
Hi All,

It seems some students may miss the fact that IFRS 8 'Operating Segments' is examinable from December 2009 (it did not appear in D09) and in some cases, text books are still referring to IAS 14, which is IFRS 8's predecessor.

I have included below the text on IFRS 8 from my book which summarises the requirements:


The objective of this IFRS is to deal with the information that an entity should disclose in its financial statements to enable users to evaluate the nature and financial effects of the business activities and the economic environment in which the business operates.

The standard itself deals with two segments:

• ‘reportable’ segments; and

• ‘operating’ segments.

A reportable segment is an operating segment or aggregations of operating segments that meet specified criteria.

Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The chief operating decision maker could be the chief executive or some other senior official.

IFRS 8 requires a reporting entity to disclose in their financial statements a measure of operating segment profit or loss and of segment assets. The IFRS also requires a reconciliation of total reportable segment revenues, total profit or loss, total assets, liabilities and other amounts disclosed within the financial statements for reportable segments to corresponding amounts in the entity’s financial statements.

The IFRS also requires an entity to report information about the revenues it derives from its products or services and disclose information concerning the countries in which it earns revenues. In addition, the IFRS requires descriptive information to be disclosed concerning the way the operating segments were determined as well as the products and services provided by the segments, the differences between the measurements used in reporting segment information and those used in the entity’s financial statements as well as changes in the measurement of segment amounts from period to period.

I hope this helps you.

Kind regards


  • Primble
    Primble Registered Posts: 734 Epic contributor 🐘
  • oh confused one
    oh confused one Registered Posts: 128 Dedicated contributor 🦉
    Hi There
    Just read in my Osborne Book (and it is the most up to date one)

    "Tutorial Note" - In the examination for DFS there will be no assessment involving the preparation of operating segment information. page 160

    I take that as there will (if anything) be only a small question on it - one hopes so as it seems to be written in double dutch for me
  • Rinske
    Rinske Registered Posts: 2,453 Beyond epic contributor 🧙‍♂️
    I take that as there will (if anything) be only a small question on it - one hopes so as it seems to be written in double dutch for me

    I wish.... But I can assure you it's not. If it was double dutch, I would understand it quite a lot easier!
  • dumbodoe
    dumbodoe Registered Posts: 2 New contributor 🐸
    I dont mean to cause trouble, but what is the point in having a qualification that cannot even maintain a set syllabus. In january accouncements were made to add section in the current academic year, text books are not up to date and students really struggle to know what is going to be examined.

    If my inside information is correct and the aat are losing money, why cause all this trouble for students!
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