IASB publishes convergence proposals on segment reporting
The International Accounting Standards Board (IASB) published for public comment proposals to improve segment reporting. The proposals are set out in an Exposure Draft of an International Financial Reporting Standard (IFRS) ED 8 Operating Segments.
ED 8 results from the IASB's comparison of International Accounting Standard (IAS) 14 Segment Reporting with the US standard SFAS 131 Disclosures about Segments of an Enterprise and Related Information. The proposed IFRS would replace IAS 14 and align segment reporting with the requirements of SFAS 131.
ED 8 would require an entity to adopt the 'management approach' to reporting on the financial performance of its operating segments. The proposals would require explanations of the basis on which the segment information is prepared and reconciliations to the amounts recognised in the income statement and balance sheet.
The IASB believes that adopting the management approach would improve financial reporting.
IASB's deadline for comment is 19 May 2006.
We welcome participations from interested parties to review this document and to take this opportunity to express our views to IASB.
We would like to hear from you about this important document via return email or in writing to us before 18 April 2006. This is to allow us to submit your comments for the working group and Board's deliberations.
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