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Thread: 08 - Indian Accounting Standard (Ind AS) 108 - Operating Segments

  1. #21
    IND-AS
    Guest

    Thumbs up Information about reportable segment profit or loss, assets and liabilities of Indian Accounting Standard (Ind AS) 108 - Operating Segments

    Information about reportable segment profit or loss, assets and liabilities of Indian Accounting Standard (Ind AS) 108

    Operating Segments

    Appendix - B


    Information about reportable segment profit or loss, assets and liabilities

    IG3. The following table illustrates a suggested format for disclosing information about reportable segment profit or loss, assets and liabilities ( paragraphs 23 and 24). The same type of information is required for each year for which a statement of profit and loss is presented. Diversified Company does not allocate tax expense (tax income) or non-recurring gains and losses to reportable segments. In addition, not all reportable segments have material non -cash items other than depreciation and amortisation in profit or loss. The amounts in this illustration are assumed to be the amounts in reports used by the chief operating decision maker.


    Car
    parts
    Motor
    vessels
    Software
    Electronics
    Finance
    All
    other
    Totals

    Rs
    Rs
    Rs
    Rs
    Rs
    Rs
    Rs
    Revenues
    from external
    customers
    3,000
    5,000
    9,500
    12,000
    5,000
    1,000(a)
    35,500
    Intersegment
    revenues


    3,000
    1,500


    4,500
    Interest
    revenue
    450
    800
    1,000
    1,500


    3,750
    Interest
    expense
    350
    600
    700
    1,100


    2,750
    Net interest
    revenue(b)




    1,000

    1,000
    Depreciation
    and
    amortization
    200
    100
    50
    1,500
    1,100

    2,950
    Reportable
    segment profit
    200
    70
    900
    2,300
    500
    100
    4,070
    Other material
    non-cash
    items:







    Impairment
    of assets

    200




    200
    Reportable
    segment
    assets
    2,000
    5,000
    3,000
    12,000
    57,000
    2,000
    81,000
    Expenditures
    for reportable
    segment noncurrent
    assets
    300
    700
    500
    800
    600

    2,900
    Reportable
    segment
    liabilities
    1,050
    3,000
    1,800
    8,000
    30,000

    43,850









    (a) Revenues from segments below the quantitative thresholds are attributable to four operating segments of Diversified Company. Those segments include a small property business, an electronics equipment rental business, a software consulting practice and a warehouse leasing operation. None of those segments has ever met any of the quantitative thresholds for determining reportable segments.

    (b) The finance segment derives a majority of its revenue from interest. Management primarily relies on net interest revenue, not the gross revenue and expense amounts, in managing that segment. Therefore, as permitted by paragraph 23, only the net amount is disclosed.


  2. #22
    IND-AS
    Guest

    Thumbs up Reconciliations of reportable segment revenues, profit or loss, assets and liabilities of Indian Accounting Standard (Ind AS) 108 - Operating Segments

    Reconciliations of reportable segment revenues, profit or loss, assets and liabilities of Indian Accounting Standard (Ind AS) 108

    Operating Segments

    Appendix - B


    Reconciliations of reportable segment revenues, profit or loss, assets and liabilities

    IG4. The following illustrate reconciliations of reportable segment revenues, profit or loss, assets and liabilities to the entity’s corresponding amounts (paragraph 28(a)–(d)). Reconciliations also are required to be shown for every other material item of information disclosed (paragraph 28(e)). The entity’s financial statements are assumed not to include discontinued operations. As discussed in paragraph IG2, the entity recognises and measures pension expense of its reportable segments on the basis of cash payments to the pension plan, and it does not allocate certain items to its reportable segments.

    Revenues
    Rs
    Total revenues for reportable segments
    39,000
    Other revenues
    1,000
    Elimination of intersegment revenues
    (4,500)
    Entity’s revenues
    35,500

    Profit or loss
    Rs.
    Total profit or loss for reportable segments
    3,970
    Other profit or loss
    100
    Elimination of intersegment profits
    (500)
    Unallocated amounts:

    Litigation settlement received
    500
    Other corporate expenses
    (750)
    Adjustment to pension expense in consolidation
    (250)
    Income before income tax expense
    3,070

    Assets
    Rs.
    Total assets for reportable segments
    79,000
    Other assets
    2,000
    Elimination of receivable from corporate headquarters
    (1,000)
    Other unallocated amounts
    1,500

    Liabilities
    Rs.
    Total liabilities for reportable segments
    43,850
    Unallocated defined benefit pension liabilities
    25,000
    Entity’s liabilities
    68,850

    Other material items
    Reportable
    segment totals
    Adjustments
    Entity totals

    Rs.
    Rs.
    Rs.
    Interest revenue
    3,750
    75
    3,825
    Interest expense
    2,750
    (50)
    2,700
    Net interest revenue
    (finance segment only)
    1,000

    1,000
    Expenditures for assets
    2,900
    1,000
    3,900
    Depreciation and
    amortization
    2,950

    2,950
    Impairment of assets
    200

    200

    The reconciling item to adjust expenditures for assets is the amount incurred for the corporate headquarters building, which is not included in segment information. None of the other adjustments are material.


  3. #23
    IND-AS
    Guest

    Thumbs up Geographical information of Indian Accounting Standard (Ind AS) 108 - Operating Segments

    Geographical information of Indian Accounting Standard (Ind AS) 108

    Operating Segments

    Appendix - B

    Geographical information

    IG5. The following illustrates the geographical information required by paragraph 33. (Because Diversified Company’s reportable segments are based on differences in products and services, no additional disclosures of revenue information about products and services are required (paragraph 32).)

    Geographical information
    Revenues(a)
    Non-current
    assets

    Rs.
    Rs.
    United States
    19,000
    11,000
    Canada
    4,200

    China
    3,400
    6,500
    Japan
    2,900
    3,500
    Other countries
    6,000
    3,000
    Total
    35,500
    24,000

    (a) Revenues are attributed to countries on the basis of the customer’s location.


  4. #24
    IND-AS
    Guest

    Thumbs up Information about major customers of Indian Accounting Standard (Ind AS) 108 - Operating Segments

    Information about major customers of Indian Accounting Standard (Ind AS) 108

    Operating Segments

    Appendix - B


    Information about major customers

    IG6. The following illustrates the information about major customers required by paragraph 34. Neither the identity of the customer nor the amount of revenues for each operating segment is required.

    Revenues from one customer of Diversified Company’s software and electronics segments represent approximately Rs. 5,000 of the Company’s total revenues.



  5. #25
    IND-AS
    Guest

    Thumbs up Diagram to assist in identifying reportable segments of Indian Accounting Standard (Ind AS) 108 - Operating Segments

    Diagram to assist in identifying reportable segments of Indian Accounting Standard (Ind AS) 108

    Operating Segments

    Appendix - B


    Diagram to assist in identifying reportable segments

    IG7. The following diagram illustrates how to apply the main provisions for identifying reportable segments as defined in the Indian Accounting Standard. The diagram is a visual supplement to the Indian Accounting Standard. It should not be interpreted as altering or adding to any requirements of the Indian Accounting Standard nor should it be regarded as a substitute for the requirements.


    For Full Detail You can download this from PDF Format

    Attached Files Attached Files

  6. #26
    IND-AS
    Guest

    Thumbs up Appendix - 1 of Indian Accounting Standard (Ind AS) 108 - Operating Segments

    Appendix - 1 of Indian Accounting Standard (Ind AS) 108

    Operating Segments


    Appendix - 1

    Note:
    This appendix is not a part of the Indian Accounting Standard. The purpose of this Appendix is only to bring out the differences between Indian Accounting Standard (Ind AS) 108 and the corresponding International Financial Reporting Standard (IFRS) 8, Operating Segments

    Comparison with IFRS 8, Operating Segments

    1. The transitional provisions given in IFRS 108 has not been given in Ind AS 1 08, since all transitional provisions related to Ind ASs, wherever considered appropriate, have been included in Ind AS 101, First-time Adoption of Indian Accounting Standards corresponding to IFRS 1, First-time Adoption of International Financial Reporting Standards

    2. Different terminology is used, as used in existing laws e.g., the term ‘balance sheet’ is used instead of ‘Statement of financial position’ and ‘Statement of profit and loss’ is used instead of ‘Statement of comprehensive income’.


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