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Saturday 20 September 2014

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Segment Reporting

Meeting summaries and observer notes


 IASB October 2006


 

The Board discussed the following sweep issues arising from Board members’ comments on the pre-ballot draft of the IFRS:

  • Disclosure of information about major customers – entities under common state control
  • Definition of listed companies
  • Disclosure of information about major customers – entities under common state control

The pre-ballot draft specified that a group of entities known by the reporting entity to be under common control be treated as a

single customer. It also required a government and its controlled entities to be treated as a single customer, unless the existence of common state control has no impact on the terms of the entities’ transactions with the reporting entity. The Board decided that determining the impact of control on transactions was not operational. The Board decided instead that the IFRS should require a group of entities known to the reporting entity to be under control of a government (national, state, provincial, territorial, local or foreign) to be treated as a single customer. The Board noted, however, that its decision is an interim solution because a similar issue is being discussed in IAS 24 Related Party Disclosures. When the proposals on IAS 24 are finalised, a consequential amendment to IFRS 8 will be considered to ensure consistent treatment of both issues.

Definition of listed companies

The Board decided that the scope paragraph should describe listed entities in the same way as paragraph 10 of IAS 27 Consolidated and Separate Financial Statements. The Board decided that the consequential amendment to IAS 33 Earnings per Share should be consistent with IAS 27.

Date: 10/19/2006