IFRS 8

Disclosures for annual financial statements

By:
Mark Hucklesby,
Sarah Carroll
16 Dec 20221 min read
Segmental information is a way of increasing transparency in financial statements prepared for investors and creditors, especially for areas of the business that are significant and drive the entity’s overall business strategy. IFRS 8 ‘Operating Segments’ requires this information that is provided to management to be disclosed in the annual financial statements, so that investors and other users of entities’ financial statements can review an entity’s operations from the same perspective.

Our ‘Insights into IFRS 8’ series is designed to illustrate how IFRS 8 should be applied and it provides guidance and insight in some problematic areas. We also include several examples illustrating the Standard’s requirements. This article sets out example disclosures of segment information.

Included in this article are illustrative disclosures under IFRS 8 for a fictional entity Illustrative Corporation Ltd and its subsidiaries (the Group) – a fictional consulting, service and retail entity that has been preparing IFRS consolidated financial statements for several years.

IFRS 8 requires each operating segment item to be disclosed using the same measures reported to the chief operating decision maker (ie based on internal management information).

IFRS 8 disclosures for annual financial statements

IFRS 8 disclosures for annual financial statements

The illustrative disclosures in this article are based on a fictitious entity, and so cannot be viewed as the only acceptable way of providing segment disclosures.
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We hope you find the information in this article helpful in giving you some insight into IFRS 8. If you would like to discuss any of the points raised, please speak to your usual Grant Thornton contact or your local member firm.

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Authors
  • Mark Hucklesby
    Mark Hucklesby Mark is the Director of Financial Reporting at Grant Thornton International, he shares the skill and experience gained from over 35 years in the accounting and auditing profession working in New Zealand, England and the United States with the global network. View Profile
  • Sarah Carroll
    Sarah Carroll Sarah is a director of the global corporate reporting team specialising in promoting both sustainability reporting and the consistent application of International Financial Reporting Standards (IFRS). View Profile