United States

Proposed improvements to IFRS 8


The International Accounting Standards Board recently issued an Exposure Draft, Improvements to IFRS 8, Operating Segments - Proposed amendments to IFRS 8 and IAS 34. If finalized, the proposed amendments would make the following revisions to International Financial Reporting Standard (IFRS) 8, Operating Segments, among others:

  • Clarify and emphasize the criteria that must be met before two operating segments may be aggregated
  • Require companies to disclose the title and role of the person or group that performs the function of the chief operating decision maker
  • Require companies to provide information in the notes to the financial statements if segments in the financial statements differ from segments reported elsewhere in the annual report and in accompanying materials
  • Clarify that the explanations of reconciling items should be given with sufficient detail to enable users of financial statements to understand the nature of the reconciling items

If finalized, the proposed amendments to International Accounting Standard (IAS) 34, Interim Financial Reporting, would require companies that change their segments to provide restated segment information for prior interim periods earlier than they currently do. The Board proposes that, in the first interim report after a change in the composition of an entity’s reportable segments, the entity would present restated segment information for all interim periods both of the current financial year and of prior financial years, unless the information is not available and the cost to develop it would be excessive.

The Exposure Draft is available for comment until July 31, 2017.