The Impact of Segment Reporting Under the IFRS 8 and SFAS 131 Management Approach: A Research Review

2013 ◽  
Vol 24 (3) ◽  
pp. 261-312 ◽  
Author(s):  
Nancy B. Nichols ◽  
Donna L. Street ◽  
Ann Tarca
Keyword(s):  
Research Review ◽  
Management Approach ◽  
Segment Reporting ◽  
Sfas 131 ◽  
Ifrs 8 ◽  
The Impact

The adoption of IFRS 8 – no headway made? Evidence from segment reporting practices in Germany

2015 ◽  
Vol 16 (1) ◽  
pp. 88-113 ◽  
Author(s):  
Nina Franzen ◽  
Barbara E. Weißenberger
Keyword(s):  
Economic Benefits ◽  
Future Research ◽  
Management Approach ◽  
Specific Information ◽  
Content Type ◽  
Reporting Practices ◽  
Segment Reporting ◽  
Ifrs 8 ◽  
Segment Disclosures ◽  
The Impact

Purpose – The purpose of this paper is to assess the changes in segment reporting practices of German listed firms under the new segment reporting standard IFRS 8. Design/methodology/approach – The authors compare hand-collected segment disclosures of German firms in the first IFRS 8 year with those reported in the last IAS 14R year. Findings – The authors do not find substantial changes in the segment disclosures of German firms under IFRS 8. While the number of reportable segments slightly increased, the amount of information disclosed for each reportable segment decreased. The same applies to geographic areas reported as secondary segments under IAS 14R compared to entity-wide disclosures under IFRS 8. Furthermore, even though more country-specific information was provided, many firms still disclosed only broad geographic areas. Research limitations/implications – Future research should extend the analysis to consider more than one year of data following IFRS 8’s adoption and to examine the impact of the standard on smaller firms. Moreover, investigating economic benefits for investors and other financial statement users following IFRS 8’s adoption could be an avenue for future research. Practical implications – The findings indicate that the International Accounting Standards Board’s (IASB) expectations regarding changes in segment reporting practices under IFRS 8 have only partially been met. The results also reveal some cases of segment reporting practice where compliance is at least questionable. Both findings are of interest to standard-setters and regulators. Originality/value – The paper provides new insights into the effects of IFRS 8’s adoption in Germany and thus contributes to the post-implementation review of IFRS 8 carried out by the IASB in 2012/2013. The study sheds light on the consequences of applying the “management approach” to segment reporting, thereby contributing to the theoretical discussion on the adequacy of the different concepts for disclosing segment information.

scholarly journals Managerial empire building and segment reporting quality: The role of auditor industry specialization

2014 ◽  
Vol 12 (1) ◽  
pp. 518-530
Author(s):  
Chaur-Shiuh Young ◽  
Chia-Hui Chen ◽  
Fei-Liang Chien ◽  
Tzu-Yi Yu
Keyword(s):  
Reporting Quality ◽  
Management Approach ◽  
Lower Segment ◽  
Accounting Standard ◽  
Industry Specialization ◽  
External Auditors ◽  
Empire Building ◽  
Segment Reporting ◽  
Ifrs 8

This study aims to explore whether empire building firms have lower segment reporting quality under the new accounting standard-IFRS No. 8, Operating Segments. IFRS No. 8 requires firms to report segment information on basis of the management approach, which implying the opportunity of managerial manipulation. We use the sample of 8 countries that have followed IFRS 8 over the period 2009-2011, and find that when managers with high incentives to build managerial empire will conceal segment reporting information on purpose which leads to lower segment reporting quality. Furthermore, our results show that external auditors with industrial experience attenuate the agency problem of managerial empire building and consequently increase segment reporting quality.

scholarly journals International Accounting Standards (IAS). Transition of Existing to New Accounting Standards in a Rapid Changing Environment. The Impact of Adoption of New Accounting Standards in the Developed Economies in European Union. Conclusions, Expectations and Perspectives

2021 ◽  
Vol 7 (4) ◽  
pp. p78
Author(s):  
Efthalia Tabouratzi ◽  
Orestis Katsidis ◽  
Eleftherios Charamis
Keyword(s):  
Accounting Standards ◽  
International Accounting Standards ◽  
Global Level ◽  
Future Perspectives ◽  
Segment Reporting ◽  
Developed Economies ◽  
Global Pandemic ◽  
Ifrs 8 ◽  
The Impact ◽  
The Eu

Adopting a set of accounting standards on a global level derives from the growing globalization of international economies. However, the transition from old to new ones is challenging in a rapidly changing economic environment. This article presents an assessment of IFRS 8 (Operating Segments) adoption, after replacing IAS 14 (Segment Reporting), and examines the impact occurred in the developed economies within the EU, with relevant considerations referring to the current COVID-19 global pandemic situation.This study analyzes the effect of this controversial standard on segment reporting and attempts to identify the determinants of changes in disclosure practices. Based on a four country sample, the current research identifies specific significant financial information changes, although segmentation remains relatively stable. Furthermore, the study includes relevant considerations on reporting, as reflected from current COVID-19 pandemic.The present research includes a historical reference to the development of the accounting standards under examination. Conclusions, expectations, and future perspectives are also presented in the paper.

Potential of IFRS 8: Managerial "customization", relevance of subsidiaries and separate financial statements

2018 ◽  
pp. 103-131
Author(s):  
Andrea Cuccia
Keyword(s):  
Information Needs ◽  
Balance Sheet ◽  
Financial Statements ◽  
Management Approach ◽  
Economic Activities ◽  
Consolidated Financial Statements ◽  
Segment Reporting ◽  
Planning And Control ◽  
Ifrs 8 ◽  
Reporting Structure

Nowadays companies are engaged in an increasingly competitive and global arena, where informational imbalances between companies and investors might be seen as a constraint to the correct functioning of markets. Breakdown of infor-mation by segments might be seen as an attempt to intercept different information needs about each circumscribed area of economic activities individually identified within entity-group. This paper is first intended to figure out, by resorting to practical examples, the effects of full management approach on IFRS 8 segment reporting structure. Then, in the light of the state of art arising from IFRS 8 Post-Implementation Review and the latest criticisms, in order to guarantee its useful-ness, it calls for a more awareness of the multi-faceted nature of segment reporting as a planning and control tool. Besides, merit of segment reporting is to recovery subsidiaries data elided within the consolidated financial statements. Following this perspective, separate financial statements, depicting subsidiaries in terms of in-vestments and profits and losses flowing respectively into balance sheet and in-come statements, is bound to provide a synthetic overview of all the business areas occupied by entity-group.

Role of Country-Level Characteristics in Segment Reporting: EU Evidence

2021 ◽  
pp. 2150018
Author(s):  
Ahmed Aboud ◽  
Akrum Helfaya
Keyword(s):  
Positive Impact ◽  
Investor Protection ◽  
Firm Level ◽  
Reporting Practices ◽  
Segment Reporting ◽  
Country Level ◽  
Legal Enforcement ◽  
Ifrs 8 ◽  
The Impact

Based on a country-level-characteristics framework, we empirically tested the impact of IFRS 8 adoption, the country’s legal system and level of legal enforcement, investor protection, conservatism, and closeness between national GAAP and IFRS on both the quantity and quality of segment reporting. Using a sample of companies from 15 EU countries covering four years (two years preadoption and two years postadoption of IFRS 8), we found that the adoption of IFRS 8 is associated with a decrease in the quantity and an increase in the quality of segment reporting. Moreover, we report that a common-law system, the country-level legal enforcement, and investor protection have a significant and positive impact on the quantity and quality of segment reporting. Meanwhile, country-level conservatism and closeness between national GAAP and IFRS are negatively related to the quantity and quality of segment reporting. In addition to firm-level characteristics, this study extends the prior limited literature by documenting the importance of country-level characteristics as factors that enhance segment reporting practices in Europe. We also discuss the research contributions and implications for research, professional practice, and policymakers.

scholarly journals The Impact of the Management Approach on Segment Reporting

2015 ◽  
Vol 42 (3-4) ◽  
pp. 310-366 ◽  
Author(s):  
Martin Bugeja ◽  
Robert Czernkowski ◽  
Daryl Moran
Keyword(s):  
Management Approach ◽  
Segment Reporting ◽  
The Impact

scholarly journals TissueCypher Barrett’s esophagus assay impacts clinical decisions in the management of patients with Barrett’s esophagus

2021 ◽  
Vol 09 (03) ◽  
pp. E348-E355
Author(s):  
David L. Diehl ◽  
Harshit S. Khara ◽  
Nasir Akhtar ◽  
Rebecca J. Critchley-Thorne
Keyword(s):  
High Risk ◽  
Barrett’S Esophagus ◽  
Barrett's Esophagus ◽  
Clinical Decision Making ◽  
Eradication Therapy ◽  
Low Risk ◽  
Management Approach ◽  
Low Grade ◽  
Management Decisions ◽  
The Impact

Abstract Background and study aims The TissueCypher Barrett’s Esophagus Assay is a novel tissue biomarker test, and has been validated to predict progression to high-grade dysplasia (HGD) and esophageal adenocarcinoma (EAC) in patients with Barrett’s esophagus (BE). The aim of this study was to evaluate the impact of TissueCypher on clinical decision-making in the management of BE. Patients and methods TissueCypher was ordered for 60 patients with non-dysplastic (ND, n = 18) BE, indefinite for dysplasia (IND, n = 25), and low-grade dysplasia (LGD, n = 17). TissueCypher reports a risk class (low, intermediate or high) for progression to HGD or EAC within 5 years. The impact of the test results on BE management decisions was assessed. Results Fifty-two of 60 patients were male, mean age 65.2 ± 11.8, and 43 of 60 had long segment BE. TissueCypher results impacted 55.0 % of management decisions. In 21.7 % of patients, the test upstaged the management approach, resulting in endoscopic eradication therapy (EET) or shorter surveillance interval. The test downstaged the management approach in 33.4 % of patients, leading to surveillance rather than EET. In the subset of patients whose management plan was changed, upstaging was associated with a high-risk TissueCypher result, and downstaging was associated with a low-risk result (P < 0.0001). Conclusions TissueCypher was used as an adjunct to support a surveillance-only approach in 33.4 % of patients. Upstaging occurred in 21.7 % of patients, leading to therapeutic intervention or increased surveillance. These results indicate that the TissueCypher test may enable physicians to target EET for TissueCypher high-risk BE patients, while reducing unnecessary procedures in TissueCypher low-risk patients.

Type A aortic dissection: involvement of carotid artery and impact on cerebral malperfusion

2020 ◽  
pp. 021849232098432
Author(s):  
Wahaj Munir ◽  
Jun Heng Chong ◽  
Amer Harky ◽  
Mohamad Bashir ◽  
Benjamin Adams
Keyword(s):  
Carotid Artery ◽  
Aortic Dissection ◽  
Type A ◽  
Current Evidence ◽  
Management Approach ◽  
Complex Nature ◽  
Acute Type ◽  
Type A Aortic Dissection ◽  
Cerebral Malperfusion ◽  
The Impact

Acute type A aortic dissection is a surgical emergency and management of such pathology can be complex with poor outcomes when there is organ malperfusion. Carotid artery involvement is present in 30% of patients diagnosed with acute type A aortic dissection, and given its emergency and complex nature, there is much controversy regarding the approach, extent of treatment, and timing of the intervention. It is clear that the occurrence of cerebral malperfusion adds an extra layer of complexity to the decision-making framework for treatment. Standardization and validation of the optimal management approach is required, and this should ideally be addressed with large-scale studies. Nonetheless, current literature supports the need for rapid recognition and diagnosis of acute type A aortic dissection with cerebral malperfusion, immediate and extensive surgical repair, and the appropriate use of cerebral perfusion techniques. This paper aims to discuss the current evidence regarding the impact of carotid artery involvement in both the management and outcomes of acute type A aortic dissection.

Sign in / Sign up

Export Citation Format

Share Document