Based on the selected 'Basis of preparation', the software may determine that this note is not required.

 

To turn the Operating segments note on:

  • Click Reports > Options > Setup
  • Switch Inclusions -  Operating segments to On

 

 

Identification of reportable operating segments

Change the CODM if it is not the Board of Directors, for example, identify the Chief Executive Officer.

 

Where operating segments are aggregated, and are not reporting further operating segment information, replace this section with the following sentence:

 

The consolidated entity is organised into XX operating segments. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. The operating segments have been aggregated on the basis that they share similar economic characteristics.

 

Where operating segments are aggregated, add the following sentence:

 

Operating segments have been aggregated where the segments have similar economic characteristics in respect of the nature of the products and services, the product processes, the type or class of customers, the distribution methods and, if applicable, the nature of the regulatory environment.

 

Where applicable, add the following sentence:

 

The operating segments are identified by management based on the manner in which the product is sold and the nature of the service provided. Discrete financial information about each of these operating segments is reported to the CODM on at least a monthly basis.

 

 

Types of products and services

This typically aligns with the 'Principal activities' in the Directors' report.

 

 

Operating segment information

  • In accordance with the Accounting Standards, operating segments require a reconciliation between segment profit and profit before tax
  • This means the segment profit (the measure of profit reviewed by the CODM), then items such as depreciation, amortisation, interest, head office costs, etc to arrive at a profit before tax. If segment profit and profit before tax are the same, both of these rows are disclosed
  • In addition, there are two profit reconciliations within each table for current period and prior period - with items by segment (when you want to deduct depreciation, etc by segment) or items by total.

 

If there is a change in the structure of operating segments and comparative information has not been restated, another current period table can be produced:

  • Click Reports > Options > Setup
  • Set Inclusions - Operating segments change to Yes

 

Acquisition of non-current assets includes, where applicable, additions and additions through business combinations of investment properties, property, plant and equipment, intangibles, exploration and evaluation and biological assets.

 

 

Geographical information

  • Geographical non-current assets does not represent total non-current assets, as it excludes, where applicable, financial instruments, deferred tax assets, post-employment benefits assets and rights under insurance contracts
  • Modify geographical non-current assets wording where applicable.