Reportable segment
After identifying operating segments using the management approach, consider the aggregation criteria and quantitative thresholds for revenue, profit or loss and assets. IFRS 8 also contains requirements concerning the coverage of external revenue and additional disclosures. A segment may qualify as reportable under one or more thresholds; the precise calculation depends on the standard and facts.
Worked example
All operating segments have combined revenue of $1 million, including intersegment sales. One segment has $120,000 revenue. Its 12% share exceeds the 10% revenue threshold, so it is separately reportable subject to the IFRS 8 analysis.
Common mistake
Assuming every operating segment is automatically reportable, or identifying segments only by geography without considering information reviewed by the chief operating decision maker.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | SBR | Direct | September 2026–June 2027 |