IFRS 8 Operating Segments remains one of the more controversial standards issued by the IASB, with...

 

Transcribed Image Text:

IFRS 8 Operating Segments remains one of the more controversial standards issued by the IASB, with its Exposure Draft (ED) 8 receiving 182 comment letters in 2006. The standard has been effective since 2009. Following a Post-Implementation Review (PIR) of IFRS 8 conducted in 2013, another ED based on the PIR was issued in 2017, and responses to this ED were published in 2019. Required: Answer the following questions providing support for your opinions based on the material covered in the Course. (a) (b) Much of the opposition to ED 8 in 2006 was from not-for-profit organisations and associations representing charities. What were their objections to the proposed changes? Do you think their objections were justifiable? Were they effective in lobbying the IFRS Foundation? (6 marks) Despite the changes to requirements and the controversies surrounding IFRS 8, corporations were subsequently observed to have kept their segment disclosure practices the same. Why do you think this is the case? Under what circumstances would corporations change their segment disclosures? (5 marks) (c) Is segment information provided in notes to financial statements necessary? (4 marks) IFRS 8 Operating Segments remains one of the more controversial standards issued by the IASB, with its Exposure Draft (ED) 8 receiving 182 comment letters in 2006. The standard has been effective since 2009. Following a Post-Implementation Review (PIR) of IFRS 8 conducted in 2013, another ED based on the PIR was issued in 2017, and responses to this ED were published in 2019. Required: Answer the following questions providing support for your opinions based on the material covered in the Course. (a) (b) Much of the opposition to ED 8 in 2006 was from not-for-profit organisations and associations representing charities. What were their objections to the proposed changes? Do you think their objections were justifiable? Were they effective in lobbying the IFRS Foundation? (6 marks) Despite the changes to requirements and the controversies surrounding IFRS 8, corporations were subsequently observed to have kept their segment disclosure practices the same. Why do you think this is the case? Under what circumstances would corporations change their segment disclosures? (5 marks) (c) Is segment information provided in notes to financial statements necessary? (4 marks)

Answer rating: 100% (QA)

Answer a The primary objection of notforprofit organisations and associations representing charities ... View the full answer