Significant changes to the dynamic of the financial services sector in recent years have shifted the paradigms in how we work. The increased digitisation of the workforce, changes in business models, globalisation, and remote working capabilities have led to a new approach to the delivery of services. Show Deloitte has published a Special edition IAS Plus newsletter explaining the requirements of IFRS 8 and what has changed from IAS 14 Segment Reporting. Summary of IFRS 8Scope IFRS 8 applies to the separate or individual financial statements of an entity (and to the consolidated financial statements of a group with a parent):
However, when both separate and consolidated financial statements for the parent are presented in a single financial report, segment information need be presented only on the basis of the consolidated financial statements [IFRS 8.4] Operating segments IFRS 8 defines an operating segment as follows. An operating segment is a component of an entity: [IFRS 8.2]
Reportable segments IFRS 8 requires an entity to report financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating segments that meet specified criteria: [IFRS 8.13]
Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the core principles of the standard, the segments have similar economic characteristics and are similar in various prescribed respects. [IFRS 8.12] If the total external revenue reported by operating segments constitutes less than 75 per cent of the entity's revenue, additional operating segments must be identified as reportable segments (even if they do not meet the quantitative thresholds set out above) until at least 75 per cent of the entity's revenue is included in reportable segments. [IFRS 8.15] Disclosure requirements Required disclosures include:
# This disclosure requirement was added by Annual Improvements to IFRSs 2010–2012 Cycle, effective for annual periods beginning on or after 1 July 2014. * This disclosure is required only if such amounts are regularly provided to the chief operating decision maker, or in the case of specific items of revenue and expense or asset-related items, if those specified amounts are included in the relevant measure (segment profit or loss or segment assets). Which of the following information items with regard to a major customer must be disclosed?With regard to major customers, U.S. GAAP (FASB ASC 280) only requires disclosure of the total amount of revenues from each such customer and the identity of the operating segment or segments reporting the revenues.
What is major customer disclosure?major customers. If 10 percent or more of the revenue of an enterprise is derived from. sales to any single customer, that fact and the amount of revenue from each such. customer shall be disclosed.
What is considered a major customer?Major Customer means any customer of the Company who has maintained an average deposit balance of at least $100,000 during the last six months of the Term or who has maintained or obtained a credit facility of at least $100,000 from the Company during the last six months of the Term.
Does GAAP require full disclosure?As one of the principles in GAAP, the full disclosure principle definition requires that all situations, circumstances, and events that are relevant to financial statement users have to be disclosed. In other words, all of a company's financial records and transactions have to be available for viewing.
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