Professional Documents
Culture Documents
1 Index
This section of the checklist addresses MFRS 8, which requires certain entities to report
4 information regarding the nature and financial effects of their various operating
segments.
(a) have a debt or equity instruments that are traded in a public market (for example,
16 a domestic or foreign stock exchange or an over-the counter market); or
(b) file or is in the process of filing, its (consolidated) financial statements with a
17 securities commission or other regulatory organisation for the purpose of issuing any
class of instruments in a public market; or
19 If yes :
20 Core principle
MFRS 8:1 An entity shall disclose information to enable users of its financial statements to
21 evaluate the nature and financial effects of the types of business activities in which it
engages and the economic environments in which it operates.
22 Reportable segments
MFRS 8:11 The entity shall report separately information about each operating segment that:
23
26 Notes:
33 Aggregation criteria
Two or more operating segments may be aggregated into a single operating segment
34 if:
40 iii) the type or class of customer for their products and services;
43 Quantitative thresholds
b) the absolute amount of its reported profit or loss is 10 per cent or more of
the greater, in absolute amount, of (i) the combined reported profit of all
46 operating segments that did not report a loss and (ii) the combined reported loss
of all operating segments that reported a loss; or
c) its assets are 10 per cent or more of the combined assets of all operating
47 segments.
Note: Operating segments that do not meet any of the quantitative thresholds
outlined above may be considered reportable, and separately disclosed, if
48 management believes that information about the segment would be useful to
users of the financial statements.
Does the entity combine information about operating segments that do not meet the
quantitative thresholds with information about other operating segments that do not
49 meet the quantitative thresholds to produce a reportable segment?
50 If yes :
Do the operating segments have similar economic characteristics and share a majority
51 of the aggregation criteria listed in paragraph 12 of IFRS 8 (see above)?
Does the total external revenue reported by operating segments constitute less than 75
52 per cent of the entity’s revenue?
53 If yes :
Additional operating segments shall be identified as reportable segments (even if they
do not meet the criteria in paragraph 13 of IFRS 8 as set out above) until at least 75
54
per cent of the entity’s revenue is included in reportable segments.
Information about other business activities and operating segments that are not
reportable shall be combined and disclosed in an ‘all other segments’ category
55 separately from other reconciling items in the reconciliations required by paragraph 28
of IFRS 8 (see below).
The sources of the revenue included in the ‘all other segments’ category shall be
56 described.
58 If yes :
Information about that segment shall continue to be reported separately in the current
period even if it no longer meets the criteria for reportability in paragraph 13 of IFRS 8
59
(see above).
61 If yes :
Segment data for a prior period presented for comparative purposes shall be restated
to reflect the newly reportable segment as a separate segment, even if that segment
62 did not satisfy the criteria for reportability in paragraph 13 of IFRS 8 (see above) in the
prior period.
Note: Prior period segment information need not be restated if the necessary
63 information is not available and the cost to develop it would be excessive.
64 Disclosure
66 Notes:
1) To give effect to the principle in paragraph 20 of IFRS 8 (see above), an
67 entity shall disclose the following for each period for which a statement of
comprehensive income is presented:
70 General information
a) factors used to identify the entity’s reportable segments, including the basis
72 of organisation; and
Note: For example, whether management has chosen to organise the entity
around differences in products and services, geographical areas, regulatory
75 environments, or a combination of factors and whether operating segments have
been aggregated.
b) types of products and services from which each reportable segment derives
76 its revenues.
profit or loss
79
Does the entity regularly provide a measure of total assets and liabilities for each
80 reportable segment to the chief operating decision maker.
81 If yes :
An entity shall report a measure of total assets and liabilities for each reportable
82 segment .
An entity shall also disclose the following about each reportable segment if the specified
amounts are included in the measure of segment profit or loss reviewed by the chief
operating decision maker or are otherwise regularly provided to the chief operating
83
decision maker, even if not included in that measure of segment profit or loss:
c) interest revenue;
86
d) interest expense;
87
g) the entity’s interest in the profit or loss of associates and joint ventures
90 accounted for by the equity method;
Note: Where a majority of the segment’s revenues are from interest and the chief
operating decision maker relies primarily on net interest revenue to assess the
performance of the segment and make decisions about resources to be allocated
94
to the segment, an entity may report that segment’s interest revenue net of its
interest expense and disclose that it has done so.
Are a majority of the segment’s revenues from interest and does the chief operating
decision maker rely primarily on net interest revenue to assess the performance of the
95 segment and make decisions about resources to be allocated to the segment?
96 If yes :
The entity that reports that segment’s interest revenue net of its interest expense shall
97 disclose the fact that it has done so.
An entity shall disclose the following about each reportable segment if the specified
amounts are included in the measure of segment assets reviewed by the chief
98 operating decision maker or are otherwise regularly provided to the chief operating
decision maker, even if not included in the measure of segment assets:
101 Measurement
The amount of each segment item reported shall be the measure reported to the chief
102 operating decision maker for the purposes of making decisions about allocating
resources to the segment and assessing its performance.
Similarly, only those assets and liabilities that are included in the measures of the
104 segment’s assets and segment’s liabilities that are used by the chief operating decision
maker shall be reported for that segment.
If amounts are allocated to reported segment profit or loss, assets or liabilities, those
105 amounts shall be allocated on a reasonable basis.
Does the chief operating decision maker use only one measure of an operating
segment’s profit or loss, the segment’s assets or the segment’s liabilities in assessing
106 segment performance and deciding how to allocate resources?
107 If yes :
Segment profit or loss, assets and liabilities shall be reported at those measures.
108
109 If no :
The reported measures shall be those that management believes are determined in
accordance with the measurement principles most consistent with those used in
110 measuring the corresponding amounts in the entity’s financial statements.
Note: Those differences could include accounting policies and policies for
115 allocation of centrally incurred costs that are necessary for an understanding of
the reported segment information.
Note: Those differences could include accounting policies and policies for
allocation of jointly used assets that are necessary for an understanding of the
117
reported segment information.
Note: Those differences could include accounting policies and policies for
allocation of jointly utilised liabilities that are necessary for an understanding of
119
the reported segment information.
e) the nature of any changes from prior periods in the measurement methods
120 used to determine reported segment profit or loss and the effect, if any, of those
changes on the measure of segment profit or loss; and
123 Reconciliations
c) the total of the reportable segments’ assets to the entity’s assets if the
130 segment assets are reported in accordance with paragraph23. (effective 1 July
2014)
Has the entity changed the structure of its internal organisation in a manner that
136 causes the composition of its reportable segments to change?
137 If yes :
The corresponding information for earlier periods, including interim periods, shall be
138 restated unless the information is not available and the cost to develop it would be
excessive.
Note: The determination of whether the information is not available and the cost
to develop it would be excessive shall be made for each individual item of
139
disclosure.
An entity shall disclose whether it has restated the corresponding items of segment
140 information for earlier periods.
If segment information for earlier periods, including interim periods, is not restated to
reflect the change, the entity shall disclose in the year in which the change occurs
141 segment information for the current period on both the old basis and the new basis of
segmentation.
An entity shall report the revenues from external customers for each product and
146 service or each group of similar products and services, unless the necessary
information is not available and the cost to develop it would be excessive.
Where the disclosures required under paragraph 32 of IFRS 8 (see above) are not made
148 because the information is not available and the cost to develop it would be excessive,
that fact shall be disclosed.
An entity shall report the following geographical information, unless the necessary
150 information is not available and the cost to develop it would be excessive:
Note: The amounts reported under paragraph 33 of IFRS 8 (see above) shall be
based on the financial information that is used to produce the entity’s financial
161 statements.
Where the necessary information for the disclosures required under paragraph 33 of
162 IFRS 8 (see above) is not available, and the cost to develop it would be excessive, that
fact shall be disclosed.
An entity shall provide information about the extent of its reliance on its major
165 customers.
167 If yes :
The entity shall disclose that fact, the total amount of revenues from each such
168 customer, and the identity of the segment or segments reporting the revenues.
169 Notes:
1) The entity need not disclose the identity of a major customer nor the
170 amount of revenues that each segment reports from that customer.
Segment information for prior years that is reported as comparative information for the
initial year of application (including application of the amendment to paragraph 23
173 made in April 2009) shall be restated to conform to the requirements of IFRS 8, unless
the necessary information is not available and the cost to develop it would be
excessive.
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This section of the checklist addresses the presentation and disclosure requirements of
the identification of related parties and transactions with related parties. The primary
issue is to ensure that all related parties are identified. The objective of MFS124 is to
ensure that an entity’s financial statements contain the disclosures necessary to draw
4 attention to the possibility that its financial position and profit or loss may have been
affected by the existence of related parties and by transactions and outstanding
balances, including commitments, with such parties.
MFRS 124:9 A related party is a person or entity that is related to the entity that is preparing its
20 financial statements (also referred to as the “reporting entity”):
MFRS1 24:9(a) a) A person or a close member of that person’s family is related to a reporting
21 entity if that person:
(i) The entity and the reporting entity are members of the same group
(which means that each parent, subsidiary and fellow subsidiary is related
31
to the others).
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(ii) One entity is an associate or joint venture of the other entity (or an
associate or joint venture of a member of a group of which the other entity
32
is a member).
(iii) Both entities are joint ventures of the same third party.
33
(iv) One entity is a joint venture of a third entity and the other entity is an
34 associate of the third entity.
50 If yes :
An entity shall disclose the name of its parent and, if different, its ultimate controlling
51 party.
If neither the entity’s parent nor the ultimate controlling party produces consolidated
financial statements available for public use, the name of the next most senior parent
53
that does so shall also be disclosed.
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Note: The next most senior parent is the first parent in the group above the
immediate parent that produces consolidated financial statements available for
54
public use.
To enable users of financial statements to form a view about the effects of related party
relationships on an entity, it is appropriate to disclose the related party relationship
55 when control exists, irrespective of whether there have been transactions between the
related parties.
61 If yes :
An entity shall disclose key management personnel compensation in total.
62
64 Notes:
1) See guidance to IAS 24:9 above for the definition of key management
65 personnel.
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2) Compensation includes all employee benefits (as defined in IAS 19
Employee Benefits) including employee benefits to which IFRS 2 Share-based
Payment applies. Employee benefits are all forms of consideration paid, payable
66 or provided by the entity, or on behalf of the entity, in exchange for services
rendered to the entity. It also includes such consideration paid on behalf of a
parent of the entity in respect of the entity. Compensation includes:
An entity shall disclose key management personnel compensation for each of the
71 following categories:
a) short-term employee benefits;
72
b) post-employment benefits;
73
e) share-based payment.
76
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Note: A related party transaction is a transfer of resources, services or obligations
78 between a reporting entity and a related party, regardless of whether a price is
charged.
If an entity has had related party transactions during the periods covered by the
79 financial statements, it shall disclose:
Amounts incurred by the entity for the provision of key management personnel
services that are provided by a separate management entity shall be disclosed.
90
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b) entities with joint control of, or significant influence over, the entity;
93
c) subsidiaries;
94
d) associates;
95
97
f) key management personnel of the entity or its parent; and
98
100 Notes:
2) The following are examples of transactions that are disclosed if they are
102 with a related party:
106 d) leases;
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g) transfers under finance arrangements (including loans and equity
109 contributions in cash or in kind);
115
Disclosures that related party transactions were made on terms equivalent to those that
prevail in arm’s length transactions are made only if such terms can be substantiated.
116
24C Is the entity exempt from the disclosure requirements of related party transactions with
119 the government?
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