IAASA has published the results of its survey into the operating segment disclosures by issuers. The survey covered the 2016/17 financial statements of twenty-nine entities listed on the Irish Stock Exchange. The paper also sets out some of the enforcement actions taken by IAASA relating to operating segment disclosures.
Key survey results
IAASA’s desk top survey identified that a total of eighty-four operating segments were presented by the twenty-nine selected issuers in their most recently published annual reports – an average of 2.9 segments per issuer. Eleven issuers identified the board of directors as their CODM, while seven issuers identified the Chief Executive Officer as the Chief Operating Decision Maker (CODM).
Six issuers did not disclose the judgements made by management in applying the operating segment aggregation criteria and seven issuers did not disclose or specifically address the basis of accounting for any transactions between their reportable segments. Finally, five issuers did not provide all of the reconciliations required by IFRS 8 Operating Segments.
It is IAASA’s expectation that management, boards and audit committees will continue to carefully assess and consider the disclosure requirements of IFRS 8 Operating Segments, and ensure that all relevant information is disclosed in their financial statements.
You can read the full paper here.