Question

Question 1

(a) Discuss the difference between a Reportable segment and an Operating segment.

(b)What are the disclosure requirements of IFRS 8?

Question 2

(a) Distinguish between Interim period and Interim financial report.

(b) What are the minimum contents prescribed by IAS 34 for an interim report?

(c) What are the periods that should be covered by the interim financial statements?  

Answer 1

A. Operating Segments

Organizations normally offer in excess of one item, every one of which is liable to its very own market powers. A few items are productive and others are most certainly not. Some require more resources while others require less. Essentially, organizations work in excess of one geographic district with each having its very own socioeconomics, business cycle, and so on. It is essential to not give the organization's administration a chance to cover failing to meet expectations items/showcases in over-performing items/advertises in order to depict a misleadingly everything-is-gainful picture. In money related announcing writing, such parts of an organization that produce their own incomes and acquire costs, that are surveyed independently by administration from a basic leadership point of view and for which separate monetary data is accessible, are called working sections.

Reportable Segments

For organizations that are recorded on stock trades or are currently such posting, money related announcing benchmarks require revelations that enable clients of monetary articulations to see through the solidified introduction of the considerable number of items/showcases and distinguish remain solitary execution of fragments. Reportable fragments are those working portions whose:

Incomes (interior or outside) are at least 10% of the joined income of every single working fragment, or

Benefit or misfortune is at least 10% of the more prominent of (a) the joined benefit of benefit making working fragments, and (b) the consolidated loss of misfortune making working portions, or

Resources are at least 10% of joined resource of every single working section.

Be that as it may, the reportable working portions should cover something like 75% of the organization's aggregate income.

B. disclosure requirements :-

general information about how the entity identified its operating segments and the types of products and services from which each operating segment derives its revenues [IFRS 8.22]

judgements made by management in applying the aggregation criteria to allow two or more operating segments to be aggregated [IFRS 8.22(aa)]#

information about the profit or loss for each reportable segment, including certain specified revenues* and expenses* such as revenue from external customers and from transactions with other segments, interest revenue and expense, depreciation and amortisation, income tax expense or income and material non-cash items [IFRS 8.21(b) and 23]

a measure of total assets* and total liabilities* for each reportable segment, and the amount of investments in associates and joint ventures and the amounts of additions to certain non-current assets ('capital expenditure') [IFRS 8.23-24]

an explanation of the measurements of segment profit or loss, segment assets and segment liabilities, including certain minimum disclosures, e.g. how transactions between segments are measured, the nature of measurement differences between segment information and other information included in the financial statements, and asymmetrical allocations to reportable segments [IFRS 8.27]

reconciliations of the totals of segment revenues, reported segment profit or loss, segment assets*, segment liabilities* and other material items to corresponding items in the entity's financial statements [IFRS 8.21(b) and 28]

some entity-wide disclosures that are required even when an entity has only one reportable segment, including information about each product and service or groups of products and services [IFRS 8.32]

analyses of revenues and certain non-current assets by geographical area – with an expanded requirement to disclose revenues/assets by individual foreign country (if material), irrespective of the identification of operating segments [IFRS 8.33]

information about transactions with major customers [IFRS 8.34]

Question 2.-

A.

Interim financial report isia financial report that is a between time articulation is a monetary report covering a time of short of what one year. Between time articulations are utilized to pass on the execution of an organization before the finish of ordinary entire year money related detailing cycles. In contrast to yearly explanations, between time articulations don't need to be examined. Interval articulations increment correspondence among organizations and general society and give financial specialists forward data between yearly revealing periods.

Interim period is a reporting period which is shorter than one year. Period for which reporting is being done by the entities.

B. Minimum contents are :-

- Condensed balance sheet

- Condensed comprehensive income statement

- Changes in equity

- Csh flows

- Explanatory notes.

C.  

- Balance sheet as on ending on current interim period & comparative Balance sheet of immidiimmed preceding financial year.

- comprehensive income statement of current period along with tear to date comparison with the same of proceeding financial year

- changes in equity cumulative from year to date of current year along with the prceedipro financial year.

- Statement of cash flow cumulative from year to date of current year along with comparison with same data of prceeproce financial year.