Post-implementation review — IFRS 8


The IASB carries out a post-implementation review of each new IFRS or major amendment. This is normally carried out two years after the new requirements have become mandatory and been implemented.

The objectives of a post-implementation review, according to the IASB's Due Process Handbook, are:

  • to review the important issues that had been identified as contentious during the development of the pronouncement
  • to consider any unexpected costs or implementation problems that have been encountered.

This page covers the IASB's post-implementation review of IFRS 8 Operating Segments.


Current status of the project

The post-implementation review process for IFRS 8 was completed in 2013. The IASB published Report and Feedback Statement Post-implementation Review: IFRS 8 Operating Segments on 18 July 2013. The report concludes the benefits of applying the Standard were largely as expected and that overall the Standard achieved its objectives and has improved financial reporting.

However, the IASB has identified a number of issues that could be considered for improvement and that warrant further investigation. These include feedback that:

  • The concept of an identifiable chief operating decision maker (CODM) is confusing and outdated, and that the identification of the CODM is difficult in practice
  • Some preparers are uncertain about presentation of the reconciliations required by IFRS 8, and some investors find aspects of reconciliations difficult to understand.

In addition, the following areas of disclosure may be considered for improvement:

  • Improvements to avoid the loss of trend information where an entity changes is basis of segmentation from one year to another
  • Require disclosure of some defined line items in order that investors can calculate their own sub-totals for operating result or cash flow
  • Addressing difficulties around the aggregation of operating segments
  • Further improvements to the requirements for reconciliations, including whether such information should be given by segment in some cases.

These issues are dealt with as part of a project in its own right: Clarifications arising from the post-implementation review of IFRS 8.


Project milestones

Date Development Comments
October 2011 IFRS 8 post-implementation review added to the IASB agenda Commencement expected late 2011
19 July 2012 Request for Information Post-implementation Review: IFRS 8 Operating Segments released Comment deadline 16 November 2012
18 July 2013 Report and Feedback Statement Post-implementation Review: IFRS 8 Operating Segments published Areas for potential improvement and amendment will be considered through the IASB's normal processes

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