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Ind-AS 108: Operating Segments (Aggregation of Segments (Same production…
Ind-AS 108: Operating Segments
Meaning
It should have capacity to generate revenues
It should be reviewed by CODM
Chief Operating Decision Maker ~ Management
We have financial information to present for segment
Aggregation of Segments
Same production process
Same class of customers
Same distribution method
Same regulatory environment
Same nature of products/services
Reportable Segments
Segment revenue (internal or external) is at least 10% of total segment revenue
Segment assets are at least 10% of total segment assets
Segment results are at least 10% of total segment results
Total results = Profit or loss whichever is higher
Additional conditions
Unreportable in current year but reportable in previous year =
Include segment in current year's report for comparison purpose
Reportable in current year but unreportable in previous year=
Revise previous year's report by including such segment for comparison purpose
Reportable segments should cover
at least 75% of total external revenue
Use unreportable segments to meet this, if necessary
Any other segment which management considers necessary to disclose may be reported
Practical limit of up to 10 reportable segments
Treatment of Unreportable Segments
Disclosed in segment report in aggregate as "Others"
Disclosures in Segment Report
General Information
Basis for organising products/services
Basis to aggregate similar products/services
Names of different products/services
Names of different areas
Major customers
(At least 10% of revenue)
Measurement of Segment Information
Same measurement as in CODM report
Segment revenue (External and Internal)
Segment Result
Segment Assets
Segment Liabilities
Other Material Items
Interest Income
Interest Expenses
Net Interest Revenue
Depreciation and Amortisation Expenses
Other non-cash expenses like impairment losses
Capital expenditure on assets
Reconciliation of Segment Information with Entity's Information
Segment information +- Adjustments = Entity Information