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IFRS 8 - Post-Implementation Review


IFRS 8 Operating Segments replaced IAS 14 Segment Reporting and converged IFRS and US GAAP. IFRS 8 adopted a 'through the eyes of management' approach to segment reporting, requiring disclosures based on the numbers reported to the Chief Operating Decision Maker. At the time of adoption, some constituents believed that the changes resulted in lower quality financial reporting.

In 2012, the IASB carried out a Post-Implementation Review ('PIR') of IFRS 8. This was the first PIR carried out since they became a mandatory part of the IASB's Due Process for significant or contentious standards.

To provide a response to the IASB's Request for Information EFRAG gathered evidence from constituents across Europe and carried out a series of outreach events.

The IASB concluded its PIR on IFRS 8 in July 2013 and published a feedback statement. It identified six areas of potential improvements to the quality of segment reporting:

  • the identification of the CODM;
  • the aggregation of operating segments into reportable segments;
  • the preservation of trend data on reorganisation;
  • the allocation of reconciling items to individual segments;
  • improvements to the understandability of the reconciliation; and
  • increasing the number of reported line items.

On 19 May 2015, the IASB decided to address the above issues in a narrow-scope amendment and to issue an Exposure Draft.

The Exposure Draft is expected to be published in Q3 of 2016.

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