PAGE1

FI
NANCI
ALACCOUNTI
NGANDREPORTI
NG

OPERATI
NGSEGMENTS

Scope
PFRS 8 appl
i
es tothe separ
ate orindi
vi
dualfi
nanci
alstat
ement
s ofan ent
it
y(and t
othe
consol
i
datedfi
nanci
alst
atementsofagroupwit
haparent
):

 Whosedebtorequi
tyi
nst
rument
sar
etr
adedi
napubl
i
cmar
ket

 Thatf
il
es,ori
sint
hepr
ocessoff
il
ing,i
ts(
consol
i
dat
ed)f
inanci
alst
atement
swi
tha
securi
ti
escommissi
onorot
herregul
ator
yor
gani
zat
ionf
ort
hepur
poseofi
ssui
nganycl
ass
ofinst
rument
sinapubl
icmarket
.

However,whenbot hseparateandconsol
idat
edfinanci
alst
atementsfort
hepar
entar
epresent
ed
i
nasi nglefinanci
alreport,segmentinf
ormati
onneedbepr esent
edonlyonthebasi
soft he
consol
i
datedf i
nanci
alstat
ement s.

I
dent
if
yinganOper
ati
ngSegment

 Anoperat
ingsegmentmustbeacomponentofanent i
ty,
meaning,it
soper
ati
onsandcash
fl
owsthatcanbeclearl
ydist
ingui
shed,oper
ati
onal
l
yandf orf
inanci
alr
eport
ingpur
poses,
fr
om t
herestoftheent
it
y.

 Itengagesinbusinessact
ivi
ti
esfr
om whichitmayear nrevenuesandincurexpenses
(i
ncludi
ngrevenuesandexpensesr
elat
ingtot
ransact
ionswit
hot hercomponent
soft he
sameent i
ty)

 Whoseoper
ati
ngresultsar
er egul
arlyrevi
ewedbytheent
it
y’schi
efoper
ati
ngdecisi
on
makertomakedeci
sionsaboutresourcestobeal
l
ocat
edtothesegmentandassessit
s
per
for
mance

 Forwhi
chdi
scr
etef
inanci
ali
nfor
mat
ioni
sav
ail
abl
e.

Anoper
atingsegmentmayengagei
nbusinessacti
vi
ti
esforwhi
chithasyettoearnrev
enues,
for
exampl
e,star
t-
upoperat
ionsmaybeoper
atingsegmentsbef
oreear
ningr
ev enues.

Theterm‘chiefoperat
ingdeci
sionmaker’i
denti
fi
esaf unct
ion,notnecessar
il
yamanagerwitha
speci
fi
ctit
le.Thatf
unctioni
stoall
ocat
eresourcestoandassesstheperformanceoft
heoper
ati
ng
segmentsofanentit
y .

Reportabl
eSegment–Anoper
ati
ngSegmentf
orwhi
chsegmenti
nfor
mat
ioni
srequi
redt
obe
di
sclosed

QUANTI
TATI
VETHRESHOLDS

Anenti
tyshal
lreportsepar
atel
yinformati
onaboutanoper
ati
ngsegmentt
hatmeet
sanyoratl
east
oneofthefol
l
owi ngquanti
tat
ivethreshol
ds:

a)I
tsreportedrev
enue,i
ncludi
ngbot
hsal
est
oexternalcustomer
sandint
ersegmentsalesor
tr
ansfers,i
s10per centormoreofthecombinedr ev
enue,i
nter
nalandexternal
,ofall
oper
atingsegments.

b)Theabsolut
eamountofit
sreportedprof
itorl
ossis10per centormor eofthegreat
er,i
n
absol
uteamount,
of(i
)thecombinedreport
edprof
itofalloperat
ingsegmentsthatdi
dnot
repor
talossand(i
i)t
hecombinedreport
edlossofalloperat
ingsegmentsthatrepor
teda
l
oss.

c) I
tsasset
sar
e10per
centormor
eoft
hecombi
nedasset
sofal
loper
ati
ngsegment
s.

Oper
ati
ngsegment
sthatdonotmeetanyoft
hequant
it
ati
vet
hreshol
dsmaybeconsi
der
ed

10/
16-
10
 PAGE2
repor
tabl
e,andsepar
atel
ydiscl
osed,i
fmanagementbeli
evest
hati
nfor
mat
ionaboutt
he
segmentwouldbeusef
ultouser
softhefi
nanci
alst
atement
s.

OVERALLSI
ZETEST

 Iftotalext ernalrevenueattr
ibutabl
et or eport
ablesegment si dent
if
ied usi
ng the10%
quantitati
vet hreshol
dsislesst han75% oft het otalconsoli
dat
edorent erpr
iser evenue
(externalrevenue),addi
ti
onalsegment sshouldbei dentif
iedasreport
ablesegment s,even
i
ft heydonotmeett he10% r equi
rement . Unti
latl east75% oftotalconsol
idatedor
enterpriserevenueisincl
udedinreportabl
esegment s.

 I
notherwor
ds,t
hequant
it
ati
vethr
esholdswi
l
lnotbenecessar
yindet
ermi
ningaddi
ti
onal
r
epor
tabl
esegment
sinor
dertomeetthe75%requi
rement
.

DI
SCLOSURESREQUI
REDFORREPORTABLESEGMENTS

Anentit
yshalldi
scl
oseinf
ormati
ontoenableusersofit
sfi
nanci
alst
atement
stoeval
uatethe
nat
ureandfinanci
alef
fect
soft hebusi
nessactiv
iti
esinwhi
chitengagesandtheeconomic
env
ironment
si nwhi
chi
toperat
es.Di
scl
osureswil
li
nclude

a)Generali
nfor
mat i
on-Fact orsusedt
oident
if
yt heent
it
y’sreport
abl
esegment
s,incl
udi
ng
thebasisoforganizat
ionandt y
pesofpr
oductsandservi
cesf r
om whi
cheachrepor
tabl
e
segmentderi
vesitsrevenues.

b)I
nfor
mat
ionaboutr
epor
tedsegmentpr
ofi
torl
oss

c) Reconci
li
ati
ons oft he t
otal
s ofsegmentrev
enues,repor
ted segmentpr
ofi
torl oss,
segmentassets,segmentl i
abi
l
iti
esandot
hermateri
alsegmentitemstocorr
espondi
ng
enti
tyamounts

ENTI
TYWI
DEDI
SCLOSURES:

a)I
nfor
mat
ionaboutpr
oduct
sandser
vices

b)I
nfor
mat
ionaboutgeogr
aphi
cal
areas

c) Infor
mat i
onaboutmaj
orcust
omers-I
frevenuesf
rom tr
ansacti
onswit
hasi ngl
eext
ernal
customeramountto10percentormoreofanenti
ty’
srevenues,t
heenti
tyshal
ldi
scl
ose
thatfactanddi
scl
oset
hefoll
owi
ng:

a.Thet
otal
amountofr
evenuesf
rom eachsuchcust
omer

b.Thei
dent
it
yoft
hesegmentorsegment
srepor
ti
ngt
her
evenues.

--END--

10/
16-
10