Show Less
Restricted access

Segment Reporting under IFRS 8

Reporting practice and economic consequences


Martin Nienhaus

The adoption of IFRS 8 marked a major change in the segment reporting rules under IFRS. This step, however, was heavily criticized and several questions regarding IFRS 8 still remain unanswered. Therefore, this study analyzes the impact of IFRS 8 on segment reporting practice and its economic consequences. The results show that firms report on average more segment information. Moreover, segment reports from the management’s perspective are useful and mitigate information asymmetries, reduce the cost of capital and affect the work of financial analysts. The findings have implications for the IASB, preparers, auditors and users of financial statements as well as enforcement institutions.
Show Summary Details
Restricted access

3. State of research


3State of research

In general, there is plenty of empirical research on segment reporting and there is also a variety of different research approaches. In a broad sense, the empirical literature on segment reporting can be distinguished in descriptive studies and studies on the economic consequences. This study conducts both approaches and, thus, both research streams are introduced in the following.

There is a lot of early research on the general benefits of segment reporting. This study, however, analyzes the impact of introducing the management approach to segment reporting. Therefore it predominantly focuses on studies that deal with the introduction of SFAS No. 131 and IFRS 8. Figure 3-1 presents the classification of the related empirical literature discussed in this chapter. The literature on the economic consequences is further sub-divided into different fields which analyze segment reporting from different angles.

Figure 3-1:Classification of the related empirical literature

You are not authenticated to view the full text of this chapter or article.

This site requires a subscription or purchase to access the full text of books or journals.

Do you have any questions? Contact us.

Or login to access all content.