IASB completes Post-implementation Review of IFRS 8

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18 Jul, 2013

The IASB has completed its Post-implementation Review (PIR) of IFRS 8 'Operating Segments'. The completion of the PIR of IFRS 8 marks the first ever PIR conducted by the IASB as part of its due process. The review concluded that IFRS 8 has achieved its objectives.

Some of the key results from the PIR of IFRS 8 were:

  • Management and investors communicated more efficiently with the use of the management perspective.
  • Low incremental costs of implementing IFRS 8.
  • Achieves convergence with the FASB's guidance.
  • General consensus by preparers was that the Standard works well and was supported by the accounting community (auditors, accounting firms, standard-setters and regulators). 
  • Many considered the requirement to report revenue by customer's attributed country to be useful.

Further, the investor community's view of IFRS 8 were mixed. Some believed that the information about how management views the business to be useful information, while others investors felt that management's intentions could "obscure the entity's true management structure (often as a result of concerns about commercial sensitivity) or to mask loss-making activities within individual segments."

Any issues found in the PIR that are warranted will be discussed with the FASB to ensure that convergence with US GAAP is achieved.


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