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

Under Ind AS 108, which of the following is stated to be NOT an operating segment of an entity?

The entity's post-employment benefit plans are not operating segments. Ind AS 108 expressly says so in paragraph 6. Components that earn revenues, have discrete information and are reviewed by the chief operating decision maker can be operating segments, whereas such benefit plans are excluded.

  1. AA division whose results are regularly reviewed by the chief operating decision maker and which earns revenues
  2. BThe entity's post-employment benefit plansCorrect
  3. CA business component with its own segment manager that earns external revenues
  4. DA component for which discrete financial information is available and used to allocate resources

Explanation

Paragraph 6 states that for the purposes of Ind AS 108 an entity's post-employment benefit plans are not operating segments. Corporate headquarters or functional departments that earn no revenue, or only incidental revenue, also need not be operating segments. The other options describe typical operating segment features.

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