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Version date: 26 February 2020 - onwards

Aggregation of operating segments (paras. BC30A-BC30B)

BC30A The Board received a request to consider including a disclosure in paragraph 22 that would require a description of the operating segments that have been aggregated and the economic indicators that have been assessed to decide whether operating segments have 'similar economic characteristics' in accordance with paragraph 12. The Board observed that:

(a) paragraph 12 does not elaborate upon the meaning of ''similar economic characteristics'' except to say that operating segments that share similar economic characteristics would be expected to exhibit a similar long term financial performance. In addition, determining whether operating segments have similar economic characteristics requires the use of judgement.

(b) paragraph 22(a) currently contains a requirement to disclose the factors used to identify the entity's reportable segments, including the basis of organisation, and suggests, as an example, disclosing whether operating segments have been aggregated. However, there is no explicit, or indeed apparent, requirement in paragraph 22(a) to disclose the aggregation of operating segments.