Segments Follow the CODM View
Explain how IFRS 8 identifies operating segments using the management approach.
Segments are a window into how management runs the business. CODM view The chief operating decision maker may be a person or group. The key evidence is what they review regularly to allocate resources and assess performance. Discrete information A component needs discrete financial information. A sales slogan or market label is not enough if management does not review separate financial results. Aggregation and thresholds Operating segments may be aggregated only when the criteria support similarity. Quantitative thresholds then identify reportable segments, with reconciliation back to IFRS totals. Common trap Do not let legal entity structure or the old note…
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