Suggested changes

The amendments proposed in ED/2017/2 Improvements to IFRS 8 'Operating Segments' (Proposed amendments to IFRS 8 and IAS 34) are:

• Description of the chief operating decision maker. The IASB proposes to clarify IFRS 8 by:
  • stressing that the chief operating decision maker is the function that makes operating decisions and decisions about allocating resources to operating segments and assesses their performance;
  • noting that the chief operating decision maker can be an individual or a group;
  • stating that a group identified as a chief operating decision maker can have non-executive members; and
  • requiring that an entity discloses the title and description of the role of the individual or the group identified as the chief operating decision maker.
• Identification of reportable segments. Proposed amendments to IFRS 8 regarding this issue include:
  • requiring that an explanation of the reasons is disclosed if segments identified in the financial statements differ from segments identified in other parts of the entity's reporting; and
  • adding further examples to the aggregation criteria for operating segments with similar economic characteristics.
• Additional segment information. The IASB believes that IFRS 8 should be clarified by:
  • noting that under certain circumstances an entity may disclose segment information that goes beyond the information regularly provided to and reviewed by the chief operating decision maker.
• Description of reconciling items. Regarding this issue IFRS 8 would be amended by:
  
  • clarifying that sufficiently detailed explanations are required for the reconciling items so that users can understand their nature.
• Change in the composition of an entity’s reportable segments. This proposed amendment regards IAS 34 where the IASB suggests:
  • requiring that the first interim report after a change in the composition of an entity’s reportable segments must contain restated segment information for all interim periods presented.

Effective date and transition requirements

The exposure draft does not contain a proposed effective date which the IASB intends to decide on after the exposure. Nevertheless, has already concluded that earlier application would be permitted, however, the amendments to IFRS 8 and the amendments to IAS 34 must be applied at the same time.

Additional information

Please click for:

• IASB press release (link to IASB website)
• Access to the exposure draft on the IASB website