Iscuss whether the requirements of IFRS 8 Operating Segments can reasonably be criticised as inadequate.
This is an academic essay. It will require a brief introduction, a clear conclusion, an appropriate bibliography, and referencing in the Harvard style.
The aim of this assignment is to develop your skills in independently researching and evaluating the requirements of a particular international accounting standard.
You should consider the following questions while carrying out research and planning your essay:
ai??i?? What is the purpose of segmental information?
ai??i?? What are the requirements of IFRS 8 in relation to segmental information and how do they differ from other past and present accounting standards?
ai??i?? What evidence is there whether the current requirements of IFRS 8 are adequate or inadequate in enhancing the quality of information available to users of financial statements?
Guide to Sources
A starting point for your research in this area could be any good recent accounting text book with a focus on international accounting standards. IFRS 8 was issued in 2006, so you should ensure that you consult texts published after that date. An appropriate source would be the relevant section in our course text:
Elliott, B. & Elliott, J. (2013), Financial Accounting and Reporting (16th edition), FT Prentice Hall, pp.73-80.
You should also consult the official summary and full text of IFRS 8 (to access the full text you will need to register on the website of the International Accounting Standards Board; this is free of charge). These are available online at:
The standard that IFRS 8 replaced was IAS 14 Segment Reporting. Histories and summaries of IAS 14 and IFRS 8 can be found on the iasplus website at:
The UK standard that applies until the near future is SSAP 25 Segmental Reporting. This can be accessed in pdf form at:
Page 27 of this document provides a bibliography of academic research on IFRS 8. I recommend particularly:
Crawford, L. et al (2012), Operating Segments: The Usefulness of IFRS 8, ICAS Insight Report, at
Aleksanyan, M. and J. Danbolt (2012), Segment reporting in the UK. Working paper, University of Glasgow
You may, of course, wish to explore other authoritative sources in writing the essay.