IFRS 8 prescribes that an operating segment must be identified on the basis of:
Leaning Objective 21.4 Briefly compare IFRS 8 with its predecessor standard IAS 14.
A) geographic location;
B) predominant sources of risks and returns;
C) the way information is reported internally to the CODM;
D) the usefulness of financial information available to users.

Question

Quizplus · Accepted Answer

IFRS 8 requires operating segments to be identified based on the internal reports that are regularly reviewed by the entity's chief operating decision maker (CODM) to allocate resources and assess performance. This approach aligns with the management perspective, differing from IAS 14, which focused more on risks and returns.

IFRS 8 Prescribes That an Operating Segment Must Be Identified