Nancy B. Nichols, Donna L. Street and Sandra J. Cereola: An Analysis of the Impact of Adopting IFRS 8 on the Segment Disclosures of European Blue Chip Companies

Published on: 20 Mar 2013

Amidst the IASB’s post-implementation review of IFRS 8, Nancy Nichols, Donna Street and Sandra Cereola examine how the standard’s adoption changed the reporting of segments by European blue chips (i.e. companies comprising the top tier index of 14 European stock exchanges). They focus on anticipated benefits articulated in the IASB’s Basis for Conclusions and concerns expressed by IFRS 8 opponents.

In addition to convergence with U.S. GAAP, IFRS 8 Operating Segments results in the reporting of significantly more operating segments on average. However, most companies report the same number or fewer segments. Refuting claims regarding the loss of geographic data at the entity-wide level, the authors identify an improvement in the fineness of disclosures and a significant increase in the disclosure of geographic groupings. They do not identify an improvement in consistency of segment disclosures with other sections of the annual report, which they attribute to the consistency already achieved under IAS 14R.

The article was published in the Journal of Internal Accounting, Auditing and Taxation (JIAAT) and can be downloaded through ScienceDirect (there is a charge for downloading). The article is also available through SSRN (free of charge). Scientific citation requires use of the version published in the ABR:

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