Operating Segments Essay Example | Topics and Well Written Essays - 1500 words - 3

Operating Segments - Essay Example Since then there have been minor changes that have been made to IFRS 8 by the other IFRSs. This has included improvements on the IFRSs, IAS 24 with related party disclosures, IAS 19 Employee Benefits, IFRS 10 Consolidated Financial Statements and Annual Improvements to IFRSS 2010-2012 Cycle. The main function of the IFRS 8 operating system is to establish recommendations that ensure the disclosure of information on an entitys operating segments. This includes the entities products and services, the major customers it serves as well as the geographical regions of operation. These functions are mainly geared towards the achievement of global accounting standards as per the objectives of the International Accounting Board. It specifies on the entitys information reporting on its operations in its annual financial statements. It requires the authority in reporting information related to financial and descriptive matters on its reportable segment. These reportable segments comprise of aggregations of operating segments with specific criteria. Operating segments comprises of entities upon which different financial information available is put under an evaluation on a regular basis to decide on the allocation of resources and performance assessment (Belkaoui, 2004). It operates through an entity that ensures reporting as a measure on the operating segment of profits or losses being incurred by an entity. This enables an entity to report on a measure of segment liabilities and provides the decision makers with useful accounting information needed for the reconciliation of the total profits or loss, liabilities, segment revenues, total assets and other reportable amounts in correspondence to those of the financial statements. The IFRS is in need of an entity to put forth the information on revenues gotten from products and services. This is especially needed for the countries in which revenues are earned, assets are