IFRS 8 Operating Segments
IFRS 8 requires listed companies to report financial information about their operating segments, based on how management internally reviews the business.
Related Standards
Explanation
IFRS 8 follows the management approach: operating segments are the components whose results are regularly reviewed by the chief operating decision maker. For each reportable segment, companies disclose segment revenue, profit or loss, and other measures as reported internally, together with reconciliations to the consolidated figures.
Entity-wide disclosures include revenue by product or service, revenue by geographic area, and information about major customers that account for 10% or more of revenue.
The US GAAP equivalent is ASC 280, which was expanded by recent amendments to require more detailed disclosure of segment expenses.
Why It Matters
Segment and entity-wide revenue disclosures must be consistent with revenue recognized under ASC 606 or IFRS 15 and with the disaggregation of revenue disclosed. This requires revenue data that carries segment, product, and geographic attributes from source systems through revenue accounting to the general ledger.
Related Terms
Ready to Make Your SAP Finance Landscape Agentic?
Whether you are implementing SAP RAR, modernizing revenue processes, or exploring agentic finance operations, Revident helps you move from strategy to execution.