IFRS 8 – NBC Institute

CR – May 2021 – L3 – Q2b – Segment Reporting (IFRS 8)

Apply IFRS 8 principles to segment information and discuss disclosure requirements.

Question

The advisors of Amaka Limited have requested various types of information from the company to facilitate the preparation of a prospectus and other financial information in view of the fact that Amaka Limited is about to be listed on the Nigerian Stock Exchange.

As the Chief Accountant of the company, the CEO has requested that you provide the advisors with necessary information about your company that you use to allocate resources and assess performance of the company in year 2019.

You have therefore identified the following potential segments that could be reported on, based on the areas of location of the company’s operations in West Africa.

Location	Revenue (N’000)	Profit/(Loss) (N’000)	Assets (N’000)	Liabilities (N’000)
Gambia	93,600	19,440	98,460	75,600
Ghana	25,200	(7,740)	14,400	13,500
Nigeria	317,340	21,240	258,210	74,970
Togo	41,400	(1,440)	21,600	14,400
Total	477,540	31,500	392,670	178,470

Required:

i. Explain how the principles highlighted in (a) above would be applied to Amaka Limited using the information provided. (12 Marks)
ii. Discuss other disclosure requirements which Amaka Limited should include in the financial statements for the year ended December 31, 2019 as required by IFRS 8. (4 Marks)

Answer

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Tags: Financial Disclosure, IFRS 8, Operating segments, Segment Reporting
Level: Level 3

Topic: Segment Reporting (IFRS 8)

CR – May 2021 – L3 – Q2a – Segment Reporting (IFRS 8)

IFRS 8 on Operating Segments establishes principles for reporting information by operating segments. Discuss the principles in IFRS 8 for determining a company’s reportable operating segments.

Question

IFRS 8 on Operating Segments establishes principles for reporting information by operating segments. Discuss the principles in IFRS 8 for determining a company’s reportable operating segments.

Answer

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Tags: Financial Disclosure, IFRS 8, Operating segments, Reporting Standards
Level: Level 3

Topic: Segment Reporting (IFRS 8)

CR – May 2023 – L3 – Q7b – Segment Reporting (IFRS 8)

Advise on reportable operating segments based on IFRS 8 criteria for Jafuwara PLC

Question

Jafuwara PLC is a public limited company trading in six business areas, each reported separately in its internal accounts provided to the Chief Operating Decision Maker (CODM). The results of these segments for the year ended December 31, 2021, are as follows:

Operating Segment Information as at Dec. 31, 2021

Required:

Draft a report addressed to the directors of Jafuwara PLC advising them on which of the operating segments constitute a ‘reportable’ operating segment for the year ended December 31, 2021, in accordance with IFRS 8. (7 Marks)

Answer

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Tags: CODM, IFRS 8, Operating segments, Reportable Segments
Level: Level 3

Topic: Segment Reporting (IFRS 8)

CR – May 2023 – L3 – Q7a – Segment Reporting (IFRS 8)

Advise on whether research and development laboratories should be reported as separate segments under IFRS 8.

Question

Fine Face (FF) Limited produces and sells a range of body care products through three separate divisions. Additionally, the company has two laboratories responsible for research and development activities.

First Laboratory:
- Funded internally and centrally for each of the three sales divisions.
- Does not perform research and development activities for external entities.
- Each division is allocated a budget for purchasing research and development services from the laboratory.
- The laboratory is directly accountable to the divisional heads for this expenditure.
Second Laboratory:
- Performs contract investigation activities for other laboratories and body care companies.
- Earns 75% of its revenue from external customers, representing 18% of the organization’s total revenue.
- The head of the second laboratory is directly accountable to the Chief Operating Decision Maker (CODM), and the CODM regularly reviews its performance, operating activities, resource allocation, and financial results.

Fine Face Limited is uncertain whether the two laboratories should be reported as separate segments under IFRS 8 – Operating Segments.

Required:

Advise the directors of Fine Face Limited on this issue. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Chief Operating Decision Maker (CODM), IFRS 8, Operating segments, R&D
Level: Level 3

Topic: Segment Reporting (IFRS 8)

FR – March 2024 – L2 – Q2b – Financial Reporting Standards and Their Applications,

Explain the differences between operating segments and reportable segments as per IFRS 8.

Question

IFRS 8: Operating Segments requires particular classes of entities (essentially those with publicly traded securities) to disclose information about their operating segments. Information is based on internal management reports, both in the identification of operating segments and measurement of disclosed segment information. It applies to the separate or individual financial statements of an entity and to the consolidated financial statements of a group.

Required:
Distinguish between operating segments and reportable segments.

Answer

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Tags: Financial Reporting, IFRS 8, Operating segments, Reportable Segments
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: MAR 2024

CR – May 2021 – L3 – Q2b – Segment Reporting (IFRS 8)

Apply IFRS 8 principles to segment information and discuss disclosure requirements.

Question

You have therefore identified the following potential segments that could be reported on, based on the areas of location of the company’s operations in West Africa.

Location	Revenue (N’000)	Profit/(Loss) (N’000)	Assets (N’000)	Liabilities (N’000)
Gambia	93,600	19,440	98,460	75,600
Ghana	25,200	(7,740)	14,400	13,500
Nigeria	317,340	21,240	258,210	74,970
Togo	41,400	(1,440)	21,600	14,400
Total	477,540	31,500	392,670	178,470

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Disclosure, IFRS 8, Operating segments, Segment Reporting
Level: Level 3

Topic: Segment Reporting (IFRS 8)

CR – May 2021 – L3 – Q2a – Segment Reporting (IFRS 8)

IFRS 8 on Operating Segments establishes principles for reporting information by operating segments. Discuss the principles in IFRS 8 for determining a company’s reportable operating segments.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Disclosure, IFRS 8, Operating segments, Reporting Standards
Level: Level 3

Topic: Segment Reporting (IFRS 8)

CR – May 2023 – L3 – Q7b – Segment Reporting (IFRS 8)

Advise on reportable operating segments based on IFRS 8 criteria for Jafuwara PLC

Question

Operating Segment Information as at Dec. 31, 2021

Required:

Answer

Find Related Questions by Tags, levels, etc.

Tags: CODM, IFRS 8, Operating segments, Reportable Segments
Level: Level 3

Topic: Segment Reporting (IFRS 8)

CR – May 2023 – L3 – Q7a – Segment Reporting (IFRS 8)

Advise on whether research and development laboratories should be reported as separate segments under IFRS 8.

Question

First Laboratory:
- Funded internally and centrally for each of the three sales divisions.
- Does not perform research and development activities for external entities.
- Each division is allocated a budget for purchasing research and development services from the laboratory.
- The laboratory is directly accountable to the divisional heads for this expenditure.
Second Laboratory:
- Performs contract investigation activities for other laboratories and body care companies.
- Earns 75% of its revenue from external customers, representing 18% of the organization’s total revenue.
- The head of the second laboratory is directly accountable to the Chief Operating Decision Maker (CODM), and the CODM regularly reviews its performance, operating activities, resource allocation, and financial results.

Fine Face Limited is uncertain whether the two laboratories should be reported as separate segments under IFRS 8 – Operating Segments.

Required:

Advise the directors of Fine Face Limited on this issue. (8 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Chief Operating Decision Maker (CODM), IFRS 8, Operating segments, R&D
Level: Level 3

Topic: Segment Reporting (IFRS 8)

FR – March 2024 – L2 – Q2b – Financial Reporting Standards and Their Applications,

Explain the differences between operating segments and reportable segments as per IFRS 8.

Question

Required:
Distinguish between operating segments and reportable segments.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Reporting, IFRS 8, Operating segments, Reportable Segments
Level: Level 2

Topic: Financial Reporting Standards and Their Applications
Series: MAR 2024

Question Tag: IFRS 8

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CR – May 2021 – L3 – Q2b – Segment Reporting (IFRS 8)

Apply IFRS 8 principles to segment information and discuss disclosure requirements.

Required:

CR – May 2021 – L3 – Q2a – Segment Reporting (IFRS 8)

IFRS 8 on Operating Segments establishes principles for reporting information by operating segments. Discuss the principles in IFRS 8 for determining a company’s reportable operating segments.

CR – May 2023 – L3 – Q7b – Segment Reporting (IFRS 8)

Advise on reportable operating segments based on IFRS 8 criteria for Jafuwara PLC

CR – May 2023 – L3 – Q7a – Segment Reporting (IFRS 8)

Advise on whether research and development laboratories should be reported as separate segments under IFRS 8.

FR – March 2024 – L2 – Q2b – Financial Reporting Standards and Their Applications,

Explain the differences between operating segments and reportable segments as per IFRS 8.

CR – May 2021 – L3 – Q2b – Segment Reporting (IFRS 8)

Apply IFRS 8 principles to segment information and discuss disclosure requirements.

Required:

CR – May 2021 – L3 – Q2a – Segment Reporting (IFRS 8)

IFRS 8 on Operating Segments establishes principles for reporting information by operating segments. Discuss the principles in IFRS 8 for determining a company’s reportable operating segments.

CR – May 2023 – L3 – Q7b – Segment Reporting (IFRS 8)

Advise on reportable operating segments based on IFRS 8 criteria for Jafuwara PLC

CR – May 2023 – L3 – Q7a – Segment Reporting (IFRS 8)

Advise on whether research and development laboratories should be reported as separate segments under IFRS 8.

FR – March 2024 – L2 – Q2b – Financial Reporting Standards and Their Applications,

Explain the differences between operating segments and reportable segments as per IFRS 8.

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CR – May 2021 – L3 – Q2b – Segment Reporting (IFRS 8)

Apply IFRS 8 principles to segment information and discuss disclosure requirements.

Required:

You're reporting an error for "CR – May 2021 – L3 – Q2b – Segment Reporting (IFRS 8)"

CR – May 2021 – L3 – Q2a – Segment Reporting (IFRS 8)

IFRS 8 on Operating Segments establishes principles for reporting information by operating segments. Discuss the principles in IFRS 8 for determining a company’s reportable operating segments.

You're reporting an error for "CR – May 2021 – L3 – Q2a – Segment Reporting (IFRS 8)"

CR – May 2023 – L3 – Q7b – Segment Reporting (IFRS 8)

Advise on reportable operating segments based on IFRS 8 criteria for Jafuwara PLC

You're reporting an error for "CR – May 2023 – L3 – Q7b – Segment Reporting (IFRS 8)"

CR – May 2023 – L3 – Q7a – Segment Reporting (IFRS 8)

Advise on whether research and development laboratories should be reported as separate segments under IFRS 8.

You're reporting an error for "CR – May 2023 – L3 – Q7a – Segment Reporting (IFRS 8)"

FR – March 2024 – L2 – Q2b – Financial Reporting Standards and Their Applications,

Explain the differences between operating segments and reportable segments as per IFRS 8.

You're reporting an error for "FR – March 2024 – L2 – Q2b – Financial Reporting Standards and Their Applications,"

CR – May 2021 – L3 – Q2b – Segment Reporting (IFRS 8)

Apply IFRS 8 principles to segment information and discuss disclosure requirements.

Required:

You're reporting an error for "CR – May 2021 – L3 – Q2b – Segment Reporting (IFRS 8)"

CR – May 2021 – L3 – Q2a – Segment Reporting (IFRS 8)

IFRS 8 on Operating Segments establishes principles for reporting information by operating segments. Discuss the principles in IFRS 8 for determining a company’s reportable operating segments.

You're reporting an error for "CR – May 2021 – L3 – Q2a – Segment Reporting (IFRS 8)"

CR – May 2023 – L3 – Q7b – Segment Reporting (IFRS 8)

Advise on reportable operating segments based on IFRS 8 criteria for Jafuwara PLC

You're reporting an error for "CR – May 2023 – L3 – Q7b – Segment Reporting (IFRS 8)"

CR – May 2023 – L3 – Q7a – Segment Reporting (IFRS 8)

Advise on whether research and development laboratories should be reported as separate segments under IFRS 8.

You're reporting an error for "CR – May 2023 – L3 – Q7a – Segment Reporting (IFRS 8)"

FR – March 2024 – L2 – Q2b – Financial Reporting Standards and Their Applications,

Explain the differences between operating segments and reportable segments as per IFRS 8.

You're reporting an error for "FR – March 2024 – L2 – Q2b – Financial Reporting Standards and Their Applications,"

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