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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 8- Aggregation criteria
as per IFRS 8
Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principle of this IFRS, the segments have similar economic characteristics, and the segments are similar in each of the following respects:
(a)
the nature of the products and services;
(b)
the nature of the production processes;
(c)
the type or class of customer for their products and services;
(d)
the methods used to distribute their products or provide their services; and
(e)
if applicable, the nature of the regulatory environment, for example, banking, insurance or public utilities.
I wanted to know, do all the criteria need to be fulfilled for aggregation?
in question 43 part b, two criteria met but in answer they said we cannot aggregate local train operations and inter-city train operations.
I think you have to meet all of the criteria.
thank you sir for clarification
No worries
