operating segment

Article ID: 2098

Last updated: 16 Feb, 2022

An operating segment is a component of an entity:

1. that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same entity),

1. whose operating results are regularly reviewed by the entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance, and
2. for which discrete financial information is available.

(According to International Accounting Standards IFRS 8)