Providing information about segments based on the structure of an entity’s internal organisation that could enhance a user’s ability to predict actions or reactions of management that could significantly affect the entity’s future cash flow prospects.
(a) the separate or individual financial statements of an entity:
(i) whose debt or equity instruments are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local and regional markets), or
(ii) that files, or is in the process of filing, its financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments in a public market;
(b) the consolidated financial statements of a group with a parent :
(i) whose debt or equity instruments are traded in a public market (a domestic or foreign stock
exchange or an over-the-counter market, including local and regional markets), or
(ii) that files, or is in the process of filing, the consolidated financial statements with a securities commission or other regulatory organisation for the purpose of issuing any class of instruments
If an entity changes the structure of its internal organisation in a manner that causes the composition of its reportable segments to change,
the corresponding information for earlier periods, including interim periods, shall be restated unless the information is not available and the cost to develop it would be excessive. the entity shall disclose in the year in which the change occurs
If not restated segment information for the current period on both the old basis and the new basis of segmentation,
Non-current assets (other than financial instruments, deferred tax assets, post-employment benefit assets, and rights arising under insurance contracts) located in the entity’s country of domicile and in all foreign countries in which the entity holds assets.
Non-current assets in an individual foreign country, if material.
Extent of reliance on major customers, including details if any customer’s revenue is greater than 10% of the entity’s revenue
Identifying the chief operating decision maker (CODM) can be difficult.
Judgements about the components of an entity that are regularly reviewed by the CODM have been challenging and subject to regulatory scrutiny.
The regulator has challenged companies about the identification of operating segments and the appropriateness of aggregating operating segments.
Companies subject to Sarbanes-Oxley Section 404 requirements may incur additional costs in ensuring that internal processes and systems are sufficiently robust in capturing internal segment information
*Source:PWC publication – Practical Guide to Segment Reporting - 2008