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Financial Reporting · Ind AS 108 Operating Segments

Ind AS 108 Entity-wide Disclosures and Restatement

Updated 5 October 2026 · Fact-checked

Entity-wide disclosures under Ind AS 108 apply to every entity in scope, even with one segment. You disclose revenue by product or service, revenue and non-current assets by geography (home country, foreign countries), and reliance on any customer giving 10% or more of entity revenue. If segments change, restate earlier periods unless cost is excessive.

Understand Entity-wide Disclosures and Restatement

Segment disclosures in Ind AS 108 are built from management's own reporting. Some users still need a view of the whole entity that does not depend on how management slices it. Entity-wide disclosures give that view. They apply to all entities within the scope of Ind AS 108, including an entity with only one reportable segment.

The disclosures are of three kinds. First, information about products and services: revenue from external customers for each product or service, or each group of similar products and services. Second, geographical information: revenue from external customers attributed to the entity's country of domicile and to all foreign countries in total, and non-current assets located in the country of domicile and in all foreign countries in total. If revenue or assets of an individual foreign country are material, disclose that country separately. Third, major customers: if revenue from a single external customer is 10% or more of the entity's revenue, disclose that fact, the total revenue from each such customer, and the segment or segments reporting that revenue. You need not name the customer.

These disclosures are needed only to the extent they are not already given as part of the reportable segment information. If your segment reporting is already by product or by geography, you do not repeat it. Where the information is not available and the cost to develop it would be excessive, you need not give it, but you must state that fact. Revenue is attributed to individual countries on a basis the entity chooses and states, for example the customer's location. The standard does not make customer location mandatory, but the entity must disclose the basis it used. Non-current assets for this purpose exclude financial instruments, deferred tax assets, post-employment benefit assets and rights arising under insurance contracts.

A group of entities known to be under common control is treated as a single customer for the 10% test. A government and entities known to be under the control of that government are also treated as a single customer. The test compares revenue from the customer (or the group treated as one customer) with the entity's revenue as reported in the financial statements, which excludes inter-segment sales.

Restatement deals with change. If management changes its internal organisation so that the composition of reportable segments changes, the corresponding segment information for earlier periods, including interim periods, must be restated. The exception is where the information is not available and the cost to develop it would be excessive. That assessment is made separately for each item of disclosure. If you do not restate, the entity must disclose in the year of change segment information for the current period on both the old basis and the new basis of segmentation, unless the information is not available and the cost is excessive.

Key rules to remember

Major customer test
Revenue from a single customer ≥ 10% of entity revenue → disclose
Disclose the fact, total revenue from each such customer and the segment(s) reporting it. The customer's name is not required. Entities known to be under common control, and a government with entities it controls, count as one customer.
Products and services disclosure
Revenue from external customers for each product/service or group of similar ones
Required only if not already given in reportable segment information, and unless the cost is excessive.
Geographical disclosure
Revenue (external customers) and non-current assets: country of domicile + all foreign countries in total
Show an individual foreign country separately if material. State the basis of attributing revenue to countries.
Non-current assets excluded
Exclude: financial instruments, deferred tax assets, post-employment benefit assets, insurance contract rights
Use the remaining non-current assets, such as PPE and intangibles, for geography.
Restatement on change of segments
Restate prior periods (including interim) for the new segment structure, unless information is unavailable and cost is excessive
If not restated, disclose current period segment data on both old and new bases, unless excessive cost.

How to solve Entity-wide Disclosures and Restatement questions

Use this order for any question on entity-wide disclosures or a change in segments.

  1. 1Confirm that Ind AS 108 applies and that these disclosures are needed even if there is only one reportable segment.
  2. 2Check what the segment note already gives. Do not repeat product or geographical information already shown by segment.
  3. 3For products and services, group revenue from external customers by product or service or by group of similar ones.
  4. 4For geography, split external revenue and non-current assets into country of domicile and foreign countries in total. Exclude financial instruments, deferred tax assets, post-employment benefit assets and insurance rights from the assets. Show any material single foreign country separately and state the basis of attributing revenue to countries.
  5. 5For major customers, compute each customer's revenue as a percentage of the entity's revenue. Combine customers known to be under common control, or the same government and the entities it controls. Disclose where the total is 10% or more.
  6. 6If segment structure changed, restate comparatives and interim periods on the new basis. If it is not practicable because information is unavailable and cost is excessive, say so and give current period data on both bases.
  7. 7Write the conclusion in provision-facts-conclusion form with the figures.

Quickest way: 10% and domicile quick check

When to use it: Use when a numerical case gives customer sales and country-wise data and asks what must be disclosed.

  1. Compute 10% of the entity's revenue as reported in the financial statements first (not profit, and not a segment total that includes inter-segment sales).
  2. Group customers known to be under common control, then compare each customer or group with that 10% figure.
  3. List the qualifying customers with their revenue and the segment that reports it.
  4. Split revenue and non-current assets into domicile and foreign in total, then check if any single foreign country is material.
  5. Remove excluded assets (financial instruments, deferred tax and so on) before showing non-current assets.

Common mistakes in Entity-wide Disclosures and Restatement

  • Thinking entity-wide disclosures apply only when there are several segments.

    Students link them with segment reporting and assume a single-segment entity is exempt.

    Fix: Remember they apply to all entities in scope, including single-segment ones.

  • Testing the 10% customer rule against segment revenue or a total including inter-segment revenue.

    Segment tables show several revenue totals and students pick the wrong one.

    Fix: Compare revenue from the customer with the entity's revenue as reported in the financial statements, excluding inter-segment sales.

  • Treating group companies of one customer as separate customers.

    The common control rule is overlooked in the case facts.

    Fix: Aggregate entities known to be under common control, and a government with the entities it controls, before applying 10%.

  • Including financial instruments or deferred tax assets in non-current assets by geography.

    Students take 'non-current assets' as the balance sheet heading.

    Fix: Exclude financial instruments, deferred tax assets, post-employment benefit assets and insurance contract rights.

  • Not restating comparatives when reportable segments change, or restating without checking the excessive-cost exception.

    Students confuse this with a change in accounting policy or remember only one half of the rule.

    Fix: Restate prior and interim periods by default. Exception only if information is unavailable and the cost is excessive, judged item by item, with the alternative dual-basis disclosure.

  • Naming the major customer as mandatory.

    Students assume transparency requires the name.

    Fix: The entity need not disclose the identity of the customer.

Worked examples

Example 1

Zenith Ltd (domiciled in India) has total revenue of ₹500 crore for the year, as reported in its financial statements. Sales to Alpha Ltd are ₹62 crore. Sales to Beta Ltd and Gamma Ltd are ₹30 crore and ₹28 crore. Zenith knows that Beta and Gamma are both subsidiaries of the same parent and so are under common control. Sales to Delta Ltd are ₹45 crore. Sales to Alpha, Beta and Gamma are reported in the Industrial segment, and sales to Delta are reported in the Retail segment. Which customer disclosures are needed?

Show the solution
  1. Provision: disclose reliance on a single customer whose revenue is 10% or more of entity revenue. Entities known to be under common control are one customer.
  2. 10% of ₹500 crore = ₹50 crore.
  3. Alpha: ₹62 crore ≥ ₹50 crore, so it qualifies.
  4. Zenith knows Beta and Gamma are under common control of the same parent, so they are one customer: ₹30 crore + ₹28 crore = ₹58 crore ≥ ₹50 crore, so the group qualifies.
  5. Delta: ₹45 crore < ₹50 crore, so it does not qualify.

Answer: Zenith must disclose that it depends on two major customers: Alpha (₹62 crore) and the Beta-Gamma group under the common parent (₹58 crore), each reported in the Industrial segment. Names need not be given. Delta is not disclosed.

Example 2

Prime Ltd (India) reports segments by product. In the year it reorganises internally and now reports by geography instead. The CFO says restating last year's segment note will take too long. Advise on the treatment and on entity-wide disclosure of geography.

Show the solution
  1. Provision: when the internal structure changes so that reportable segments change, the corresponding earlier period information, including interim periods, is restated.
  2. Exception: restatement is not required where the information is unavailable and the cost to develop it would be excessive, assessed item by item. Time or convenience alone does not meet this test.
  3. If the entity does not restate, it must disclose in the year of change segment data for the current period on both the old and the new basis, unless that too is unavailable at excessive cost.
  4. Because segments are now geographical, the geographical entity-wide disclosure is met only to the extent the segment note gives external revenue and non-current assets (excluding financial instruments, deferred tax assets, post-employment benefit assets and insurance contract rights) split into the country of domicile and foreign countries in total. The segment areas may not match this split, and non-current assets may not be given by segment. Any remaining geographical information must be given separately, unless the cost is excessive. Revenue by product or service must also be given separately as it is no longer in the segment note, unless the cost is excessive.

Answer: Prime must restate the comparative and interim segment information on the geographical basis. It can skip this only for items where the information is unavailable and the cost is excessive, and then must give current year data on both bases. Geographical entity-wide disclosure is met only to the extent the segment note already gives external revenue and eligible non-current assets split into India and foreign countries in total; Prime must give any missing part separately. Product and service revenue must now be shown as an entity-wide disclosure.

Exam tips

  • In a case with customer sales, write the 10% figure first and show each comparison in one line. Marks follow the working.
  • Always scan facts for common control or government ownership before answering on major customers.
  • For geography, give both revenue and non-current assets, since students often give only revenue.
  • In a restatement question, state the rule, the excessive-cost exception and the dual-basis alternative, in that order.
  • MCQs often test traps: customer name not needed, single-segment entities still disclose, and excluded asset types.

Practice questions from Ind AS 108 Operating Segments

Entity-wide Disclosures and Restatement in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Entity-wide Disclosures and Restatement: frequently asked questions

Do entity-wide disclosures apply if the entity has only one segment?

Yes. They apply to all entities within the scope of Ind AS 108. A single-segment entity still gives product and service, geographical and major customer information.

Must I name a customer that provides over 10% of revenue?

No. You disclose the fact of the reliance, the total revenue from each such customer and the segment reporting it. The identity need not be given.

How is geographical revenue attributed to countries?

Ind AS 108 does not fix one basis. The entity attributes revenue to individual countries on a reasonable basis, for example the customer's location, and must disclose the basis it used.

When can I avoid restating segment information after a change?

Only when the information is not available and the cost to develop it would be excessive. This is judged for each item of disclosure. If you do not restate, show current period segment data on both the old and new bases, again unless excessive cost applies.