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IFRS 8: Operating segments

IFRS 8 Operating Segments sets out requirements for disclosure of information about an entity’s operating segments and also about an entity’s products and services, the geographical areas in which it operates, and its major customers. The standard was published in November 2006 and is effective from 1 January 2009.

Full text standard

Unaccompanied version of IFRS 8
The International Accounting Standards Board (IASB) provides free access to the consolidated unaccompanied international accounting standards for the current year through its website. Free registration is required.

This unaccompanied version does not include additional content that accompanies the full standard, such as illustrative examples, implementation guidance and bases for conclusions.

IFRS 8 summary and timeline

Looking for the synopsis? Our IFRS 8 summary and timeline are now on a separate page, featuring information on current proposals and a timeline of IASB updates.

Which version of the standard?

Financial Reporting Faculty members have unlimited online access to the consolidated edition of IFRS and amendments through the IASB's eIFRS service. Please log into eIFRS to access electronic versions of the standards. Or find out more about how to join the faculty.

The ICAEW Library & Information Service also holds print versions of the IFRS standards. Contact us by telephone on +44 (0)20 7920 8620, by web chat or by email at library@icaew.com


Recent amendments

Full access to details of all the amendments is only available to Financial Reporting Faculty members. Find out how to join the faculty.

 

 

1. Disclosure of Accounting Policies amendment to IFRS 8*

To be applied to annual periods beginning on or after 1 January 2023. Earlier application is permitted.

The IFRS 8 Implementation Guidance is changed to amend to material accounting policy information rather than significant accounting policies.

*Not UK endorsed as at 23 June 2021. Read more on UK endorsement of IFRS standards.  Not EU endorsed as at 23 June 2021. Read more on EU endorsement of IFRS standards

ICAEW guidance and commentary

Factsheets 

IFRS 8 Operating Segments
Financial Reporting Faculty, 21 August 2013
This exclusive factsheet for Financial Reporting Faculty members contains a summary of the reporting requirements for IFRS 8.

Research

Politics or accounting principles: Why was IFRS 8 so controversial? [Link to Library catalogue]
Louise Crawford, Christine Helliar and David Power, 2010
This briefing examines two related objectives: why the EU launched its own consultation process for IFRS 8 and what might the likely impact of IFRS 8 be on the content of segmental disclosures by listed companies.


eBooks

Access to eBooks is only available to ICAEW members and ACA students – please log in to view these titles.

Operating segments
EY, International GAAP 2021 (2020)
The latest edition of this comprehensive guide offers a global perspective on complex technical accounting issues to help practitioners interpret and implement IFRS. It contains worked examples and illustrations from published financial reports of major listed companies from around the world. This chapter discusses IFRS 8.

If you have any difficulties using these eBooks, please see our Help and support advice or contact library@icaew.com.


Example accounts

IFRS model accounts and disclosure checklists
Online disclosure checklists, general IFRS illustrative statements and compliance questionnaires collected by the ICAEW Library.

Company Reporting (Croner-i)

The ICAEW Library can provide examples of real-life company reports to help keep you up-to-date with reporting practices and benchmark your financial reporting compliance. Company Reporting analyses current IFRS disclosures from public companies, organised by industry sector. It also provides detailed monthly Common Practice reports on specific issues.

Contact us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com to get any documents from Company Reporting.


External resources

Some guides and comparisons that we link to may pre-date the latest amendments to this standard. While these resources contain useful information, please treat them with appropriate caution.

A fresh look at IFRS 8, ‘Operating segments’
Guide produced by PwC in March 2015 explaining the key requirements of IFRS 8 and looking at practical issues that have developed since the standard was issued.

Operating segments: The usefulness of IFRS 8
A study published by ICAS in 2012 investigating the issues around implementation of IFRS 8.

The Application of IFRS: Segment reporting
Executive summary of a survey conducted by KPMG of the latest consolidated financial statements of 81 companies within the Fortune Global 500. Published July 2010.

A practical guide to IFRS 8 for real estate entities
Guide published by PwC in January 2010.

Operating Segments – Applying IFRS 8 in practice
A 60-page guide from Grant Thornton published in June 2009 that explains key implementation issues and includes interpretational guidance and illustrative examples.

A practical guide to IFRS 8 for investment funds
Guide from PwC published in June 2009 which looks at issues of applying IFRS 8 in practice to mutual funds, hedge funds and private equity funds. The publication is based on the requirements of IFRS 8 applicable to financial periods on or after 1 January 2009.

Making Sense of a Complex World: IFRS 8 Operating Segments
Paper published by PwC in June 2009 which identifies some of the issues that telecommunications companies may encounter as they apply IFRS 8.

IFRS Converges to US GAAP on Segment Reporting
Article published in the Journal of Accountancy in April 2009.

IFRS 8 Operating Segment: Implementation Guidance
Publication from Ernst & Young published in March 2009, which provides an overview of the requirements of IFRS 8 Operating Segments. The publication includes an illustrative example and an FAQ about the application of IFRS 8.


Further reading

Manuals and handbooks

The ICAEW Library stocks the latest IFRS handbooks and manuals. You can browse all our books on IFRS 8 and segment reporting or request any of the following popular titles by contacting us on +44 (0)20 7920 8620, by web chat, or at library@icaew.com

Insights into IFRS 2020–21
KPMG, Sweet and Maxwell, 2020
Manual providing practical guidance with an emphasis on the real-life application of IFRS, with examples based on actual questions that have arisen in practice around the world.

Wiley IFRS 2020: Interpretation and application of IFRS standards
PKF, Wiley, 2020
Reference manual providing full coverage of the latest standards and thorough guidance for implementation, featuring practical tools and insight from a practitioner's perspective.

Manual of accounting: IFRS supplement 2020
PwC, LexisNexis, 2019
Practical guidance on the standards and the accounting requirements of UK law applicable to UK users of IFRS.

Find out more about how you can borrow books from the ICAEW Library or get articles and documents sent to you by email or post.


Ask ICAEW Technical Advisory Service

Get an opinion from the experts. Our experienced technical advisors can help you with your IFRS questions and offer practical advice. Call the advisory helpline on +44 (0)1908 248 250.

Questions on IFRS 8 that we've dealt with recently include:

  • My operating segments include discontinued operations. How can I present this?
  • We have restructured our business operations during the year. What do I need to consider when reporting operating segments?
  • I have changes in reportable segments after the reporting period but before the financial statements are issued. Do I have to reflect this change in the financial statements?

Find out more about the Technical and ethics advisory helpline, including our opening hours.


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