IFRS 8 Operating Segments was to a certain degree a ground-breaking law since it represented the first foray of the International Accounting Standards Board into the area of requiring companies and business to disclose information through their management. The regulation requires certain categories of business, especially publicly traded companies to disclose information regarding their products and services, operating segments, and geographic areas where they operate. In addition to the information being based on internal management reports, these entities should also disclose information about their major customers. This requirement has generated several concerns and contentions that have become common characteristics of the implementation of IFRS 8 Operating Segments (Crawford, Extance, Helliar & Power, 2012). This has in turn resulted in the emergence of concerns on whether the requirements of this regulation can be logically criticized as inadequate.

Requirements of IFRS

As previously mentioned, IFRS 8 Operating Segments requires certain categories of...
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