How-to- Determine Operating Segments tell the full story of an Entity OVERVIEW Just a compliance activity is what Segment reporting is understood by the financial reporting teams across geographies. This undermines its importance and hence is at most times overlooked by the senior management and audit committees. In this article, I plan to take you through a short journey to the key requirements of ‘Operating Segments’ – IFRS 8. The entire article will keep its focus on How-to discern the importance of segment reporting in narrating the full story of an entity. WHY IFRS 8 is IMPORTANT? When an entity becomes large, it becomes important to understand how they operate. Almost all information contained in consolidated financial statements is focused on providing users with the financial position and performance of the entity as a whole. This information is useful but it seldom tells the full story. How do we know? When we read an earnings guidance by a large entity we get...
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