The Impact of Segment Reporting Under the <scp>IFRS</scp> 8 and <scp>SFAS</scp> 131 Management Approach: A Research Review

Nichols, Nancy; Street, Donna L.; Tarca, Ann

doi:10.1111/jifm.12012

Cited by 75 publications

(109 citation statements)

References 46 publications

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“…From another point of view, under the IFRS 8, the majority of companies' disclosures did not change the number of operating segment reported; at the same time some potential keys are decreased, segment liabilities, equity method investment, and capital expenditures were also abandoned (Nichols. et al 2012(Nichols. et al , 2013.…”

Section: Theoretical Background Of the Ifrs 8 Segment Reportingmentioning

confidence: 99%

The IFRS 8 Segment Reporting Disclosure: Evidence on the Czech Listed Companies

Kopecká¹

2016

EFAJ

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Abstract:The IFRS 8, the operating segments was converged of the IAS 14 and SFAS 131(US GAAP). It was issued in November 2006 and subsequently has been applied since 2009. The core of convergence is to reduce the differences between IAS 14 and SFAS 131. The IASB expected that a change would increase useful information for users and can be used as a single set of standard accounting for international trade. However, since the standard had been applied, it emerges advantages and disadvantages for users and entities on some issues. Particularly, internal management information issue that managers use as a compass to lead the company's strategies and it conceals behind the scenes conventionally. The paper investigates a quality of information disclosure in the Czech listed companies. The important pillar is to analyse the quality of information disclosure and the effect of applying the standard.

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Section: Theoretical Background Of the Ifrs 8 Segment Reportingmentioning

confidence: 99%

The IFRS 8 Segment Reporting Disclosure: Evidence on the Czech Listed Companies

Kopecká¹

2016

EFAJ

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“…While it is plausible that IFRS 8 had a differential impact on the number of segments in different jurisdictions, another reason is that the academic papers reviewed and summarised in the PIR and the research review by Nichols et al (2013) provided little if any articulation on how they interpreted the entity-wide disclosure (e.g., Crawford et al, 2012). Indeed, under our broad measure of segment count, which treats entity-wide disclosures as segments, our results become consistent with those summarised in the PIR.…”

Section: Changes In the Number Of Segments Reportedmentioning

confidence: 99%

Segment Reporting: Is IFRS 8 Really Better?

Aleksanyan

Danbolt

2015

Accounting in Europe

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This paper contributes to the debate on segment reporting standards in the UK and Europe and, specifically, the merit of IFRS 8 relative to predecessor standards (SSAP 25 and IAS 14R). We carry out a longitudinal analysis of segment reporting practices of a large sample of listed UK companies, covering all three reporting regimes. Using the Proprietary Cost Theory (PCT) as our theoretical lens, we present evidence consistent with PCT, that proprietary costs considerations influence companies' segment disclosure choices. We show that when companies are required to disclose more detailed accounting information for geographical segments (e.g., when geography is the basis of operating segments, under IFRS 8, or primary segments, under IAS 14R), they choose to define geographical segments in broader geographic areas terms than was the case under SSAP 25. We find that although companies disclose greater quantity of segmental information under IFRS 8 and IAS 14R (than SSAP 25), the more recent standards brought about a notable reduction in (i) the level of specificity of the disclosed geographical segments, and (ii) the quantity of disclosed geographic segment profit dataone of the most important data types for users. While this may have reduced the proprietary costs of segment disclosures, the reduction in disclosure of segmental performance data may have reduced the usefulness of segment reports to investors.

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“…Furthermore, in introducing the management approach, the IASB wants, amongst other things, to contribute to more relevant segment information, allowing the users to analyze firms' performance through the management view, to support a better consistency between the segment information represented in Financial Statements and the information disclosed in the internal Management Reports, as well as the ability to promote a cost reduction by producing this kind of information (IASB, 2012;Nichols at al., 2013).…”

Section: Introductionmentioning

confidence: 99%

The Impact of IFRS 8 on Segment Disclosure Practice: Panel Evidence from Italy

Lucchese

Carlo

2016

ijafr

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The study examines the effectiveness of IFRS 8, effective since 2009, in relation to both the magnitude of segment disclosures and the firms' characteristics that might affect the disaggregated disclosure policies decisions, on Italian listed companies during the period 2008-2012.The results show that on average, the new standard did not lead to relevant changes in the segment disclosures as previously stated under IAS 14R, thus demonstrating inconsistency with the expectations of the IASB. In addition, we demonstrated, by employing a fixed-effect regression, that the magnitude of segment disclosure is negatively associated with growth rate, size, profitability and ownership diffusion.The present study contributes to the extant literature in terms of the PIR review, discussing the effectiveness of IFRS 8 some years after adoption, and not merely considering the first year, where the results may be affected by the learning curve effect in countries less familiar with Anglo-Saxon accounting.

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The Impact of Segment Reporting Under the IFRS 8 and SFAS 131 Management Approach: A Research Review

Cited by 75 publications

References 46 publications

The IFRS 8 Segment Reporting Disclosure: Evidence on the Czech Listed Companies

The IFRS 8 Segment Reporting Disclosure: Evidence on the Czech Listed Companies

Segment Reporting: Is IFRS 8 Really Better?

The Impact of IFRS 8 on Segment Disclosure Practice: Panel Evidence from Italy

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