IFRS 8 – Review of a request received by the IFRS Interpretations Committee

Date recorded:

The Boards discussed the aggregation criteria and the identification of the chief operating decision maker (CODM) under IFRS 8 Operating Segments given the Committee's recommendation that the following aspects in IFRS 8 could be the subject of future clarification:

  • the meaning of 'similar economic characteristics' in paragraph 12
  • the criteria for identifying similar segments in subparagraphs 12 (a- e); and
  • whether the definition of the CODM included in paragraph 7 should explicitly exclude non executives from the CODM group.


The Committee recommended that rather than attempting to address these issues through an interpretation or annual improvement, it would be better if the Board considered these issues as part of a future post-implementation review of IFRS 8.

Many Board members expressed concern with the Committee's recommendation given that multiple comment letters had been received from one particular party which expressed concern that the Committee's recommendation would result in a significant time delay in addressing this issue. As the Board acknowledged the similarities between the requirements in IFRS 8 and the equivalent guidance in US GAAP (Topic 280 Segment Reporting in the FASB Accounting Standards Codification) from which IFRS 8 was developed, the Board asked the staff to research further how similar concerns had been addressed in US GAAP and to consider whether this might help to identify how these concerns about IFRS 8 might be addressed.

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