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

Under Ind AS 108, which of the following is correctly described regarding the identification of operating segments?

Post-employment benefit plans are not operating segments under Ind AS 108. Headquarters with only incidental revenue is not a segment, and the chief operating decision maker is a function that allocates resources and assesses performance, not necessarily a CEO or a specific title.

  1. AA corporate headquarters that earns only incidental revenue is necessarily an operating segment
  2. BAn entity's post-employment benefit plans are not operating segmentsCorrect
  3. CThe chief operating decision maker must always be the entity's chief executive officer
  4. DThe chief operating decision maker must be a single manager holding that exact title

Explanation

Paragraph 6 states that a corporate headquarters or some functional departments may earn no revenue or only incidental revenue and would not be operating segments. It also says post-employment benefit plans are not operating segments. The CODM is a function and need not be the CEO or a person with a specific title, so the other options are wrong.

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