Users of financial statements can considerably enhance their understanding of the financial performance and position of a quoted company by referring to and analysing the segmental information the company is required to report.

The relevant accounting standard is IFRS 8 Operating Segments and we shall look at this in more detail using these notes.

Case study

A case study question – Florian plc.

There is a suggested solution here.

Additional reading

Press release by FRC on the 2015 Financial Statements of Sports Direct.

IFRS 8
https://www.ifrs.org/issued-standards/list-of-standards/ifrs-8-operating-segments/#about. This will enable you to access the text of IFRS 8, but you will have to create an account.

IFRS 8 – Principles in brief
https://www.grantthornton.global/en/insights/articles/ifrs-8-principles-in-brief/

IASPLUS
http://www.iasplus.com/en/standards/ifrs/ifrs8

IMPLEMENTATION GUIDANCE FROM PWC
https://www.pwc.com/gx/en/ifrs-reporting/pdf/segment-reporting.pdf