What is the difference between ias 14 and ifrs 8, Financial Management

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Differences between IAS 14 and IFRS 8

  • IFRS 8 requires identification of operating segments based on internal reports which are regularly reviewed by management for decision making purposes in order to allocate resources to segment and assess its performance.
  • IFRS 8 requires reconciliations of total profit or loss, total reportable segment revenues, total assets and other amounts disclosed for reportable segments to the external financial statements.
  • IFRS 8 requires an explanation of how segment loss or profit and segment assets are measured.
  • IFRS 8 requires information about revenues derived from its products or services or groups of similar products and services), about the countries in which it earns revenues and holds assets and about major customers, regardless of whether there is an operating segment identified.
  • IFRS 8 requires detailed information about the way that the operating segments were determined, the products and services provided by the segments.
  • Under IFRS 8, there is not any primary and secondary format preference (either geographical or business). Geographical disclosures are essential on a country by country basis if material.
  • IFRS 8 requires disclosures of finance cost, finance income and tax, if these items are reviewed by management for segments.

IAS 14 had a risk and return approach to identifying segments. Risk and return approach identifies segments on the foundation of different risk and returns arising from different lines of geographical and business areas.

IFRS 8 adopts managerial approach. This approach identifies segments based on the information used internally for decision making, so consequently is based on the internal organisation structure.

 


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