Skip to content

CMA Final · Corporate Financial Reporting · Operating Segments (Ind AS 108)

Ind AS 108 describes the chief operating decision maker (CODM) of an entity. Which statement is consistent with the Standard?

The CODM is a function, not a title. Its role is to allocate resources to and assess the performance of operating segments. It is often the CEO or COO, but can be a group of executive directors or others.

  1. AThe CODM is a function that allocates resources to, and assesses the performance of, operating segments, and may be a group of executive directorsCorrect
  2. BThe CODM must be the statutory auditor, who assesses segment performance independently
  3. CThe CODM is the segment manager of the largest segment by revenue
  4. DThe CODM role exists only where the entity has appointed a person titled Chief Operating Officer

Explanation

Paragraph 7 says the term identifies a function, not necessarily a manager with a specific title. The function is to allocate resources and assess performance of the segments. It is often the CEO or COO but may be a group of executive directors or others. Hence the title-based options are wrong.

Did you get it right without looking?

One question tells you little. A timed set on Operating Segments (Ind AS 108) shows your real accuracy, how long you take and where you lose marks.

Practise Operating Segments (Ind AS 108)Free diagnostic mock

More Operating Segments (Ind AS 108) questions