The Impact of Segment Reporting Under the IFRS 8 and SFAS 131 Management Approach: A Research Review |
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| Authors: | Nancy B Nichols Donna L Street Ann Tarca |
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| Institution: | 1. School of Accounting, James Madison University, , Harrisonburg, VA 22807;2. Department of Accounting, University of Dayton, , Dayton, OH 45469‐2242;3. Business School, University of Western Australia, , Crawley, Western Australia 6009, Australia |
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| Abstract: | This paper evaluates the impact of adopting the management approach for segment reporting. We review studies of the effect of the application of SFAS 131 and IFRS 8 on the number of reported operating segments and items of disclosure, segment reporting gaps and reconciliations, entitywide geographic disclosures, and competitive harm and decision usefulness of segment information. We report on the advantages and disadvantages of the management approach and explore whether the concerns of critics of adopting the management approach in IFRS 8 have been realized. We also identify opportunities for important and policy‐relevant research in the area of segment reporting based on IFRS 8. |
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