AASB 8 identifies five factors that are to be considered in determining whether or not products and services are related for the purposes of defining a business segment.It further specifies that the products and services included in a business segment must be similar with respect to all these factors.

Question

Quizplus · Accepted Answer

AASB 8 requires operating segments to be identified based on internal reports that 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. It does not specify that products and services in a segment must be similar with respect to five specific factors for defining a business segment.

AASB 8 Identifies Five Factors That Are to Be Considered