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Please provide summary on Ind AS 108 - Operating Segments

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Prity asked about 3 years ago

Please provide summary on Ind AS 108 - Operating Segments

    13       1 Answer Now Comment Report
6 Answers
Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Ashika answered over 2 years ago

An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. This Accounting Standard shall apply to companies to which Indian Accounting Standards (Ind ASs) notified under the Companies Act apply. If an entity that is not required to apply this Ind AS chooses to disclose information about segments that does not comply with this Ind AS, it shall not describe the information as segment information.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Chirag answered over 2 years ago

Segment guidance requires an entity to disclose information that enables users of the financial statements to evaluate the nature and financial effects of the business activities and the economic environments through the eyes of management The identification of an entity’s operating segments is the core determinant for the level of information included in the segment disclosures. Operating segments are components of an entity, identified based on the breakout of information contained in the internal reports that are regularly used by the entity’s chief operating decision-maker (CODM) to allocate resources and to assess performance. Reportable segments are individual operating segments or a group of operating segments for which segment information must be separately reported (that is, disclosed). Aggregation of one or more operating segments into a single reportable segment is permitted (but not required) where certain conditions are met, the principal condition being that the operating segments should have similar economic characteristics. Whether multiple operating segments can be aggregated into a single reportable segment is a matter of significant judgement.

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Open uri20170510 32134 59004f?1494421790 Anshul Dhawan answered over 2 years ago

An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. This Accounting Standard shall apply to companies to which Indian Accounting Standards (Ind ASs) notified under the Companies Act apply. If an entity that is not required to apply this Ind AS chooses to disclose information about segments that does not comply with this Ind AS, it shall not describe the information as segment information. If a financial report contains both the consolidated financial statements of a parent that is within the scope of this Ind AS as well as the parent’s separate financial statements, segment information is required only in the consolidated financial statements. Thanks & regards

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 Anil Dhawan answered over 2 years ago

Ind-AS 108 Operating Segments guides on dealing with the disclosure requirements in respect of the segments of the entities and will replace AS-17 Segment Reporting. As per Ind-AS 108, Operating Segment is a component of the entity : ◾that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity), ◾whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and ◾for which discrete financial information is available. **Aggregation Criteria of Segment** Characteristic Basis such as Nature of Products & Services, Nature of Production Processes, Types of Customers, Distribution Channel and Regulatory sector such as Banking, Insurance, NBFC etc Quantitative Basis: Revenue constitutes 10% or more OR Profit/Loss constitute 10 % or more of the Absolute Amount OR 10% or more of the Total Assets. Overriding Criteria: In any case if the Quantitative criteria is out of reach, characteristic criteria will supersede. Further, reportable segments should account for atleast 75% of entity’s Revenue. In case the same fall short of the threshold, additional operating segments shall be identified as reportable segments (even if they do not meet the criteria) until at least 75% of the entity’s revenue is included in reportable segments.

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Open uri20170510 32134 1ue0f38?1494421710 rohit agarwal answered almost 3 years ago

Please provide summary on Ind AS 108 - Operating Segments An entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates. This Accounting Standard shall apply to companies to which Indian Accounting Standards (Ind ASs) notified under the Companies Act apply. If an entity that is not required to apply this Ind AS chooses to disclose information about segments that does not comply with this Ind AS, it shall not describe the information as segment information. If a financial report contains both the consolidated financial statements of a parent that is within the scope of this Ind AS as well as the parent’s separate financial statements, segment information is required only in the consolidated financial statements.

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Data?1494421730 rohit awasthi answered about 3 years ago

Dear Friend > Ind AS 108 - Operating Segments Segment guidance requires an entity to disclose information that enables users of the financial statements to evaluate the nature and financial effects of the business activities and the economic environments through the eyes of management The identification of an entity’s operating segments is the core determinant for the level of information included in the segment disclosures. Operating segments are components of an entity, identified based on the breakout of information contained in the internal reports that are regularly used by the entity’s chief operating decision-maker (CODM) to allocate resources and to assess performance. Reportable segments are individual operating segments or a group of operating segments for which segment information must be separately reported (that is, disclosed). Aggregation of one or more operating segments into a single reportable segment is permitted (but not required) where certain conditions are met, the principal condition being that the operating segments should have similar economic characteristics. Whether multiple operating segments can be aggregated into a single reportable segment is a matter of significant judgement. For each segment disclosed, entities are required to provide a measure of profit or loss in the format viewed by the CODM, as well as a measure of assets and liabilities if such amounts are regularly provided to the CODM. Other segment disclosures include revenue from customers for each group of similar products and services, revenue by geography and dependence on major customers. Additional detailed disclosures of performance and resources are required if the CODM reviews these amounts. A reconciliation of the total amount disclosed for all segments to the primary financial statements is required for revenue, profit and loss, and other material items reviewed by the CODM. Thanks

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