Disaggregation of Material Items in Segment Reporting

The podcast discusses a significant topic regarding the disaggregation of material items of income and expense in segment reporting, as outlined in IFRS 8. The controversy arises from the differing interpretations of what constitutes 'material' items that need separate disclosures by segments. Feedback from 27 comment letters indicated that while the first part of the submission was straightforward, the meaning of material items sparked considerable disagreement among respondents. The committee concluded that entities must use judgment when determining which items to disaggregate, emphasizing that a complete breakdown of profit or loss items by segment is not mandated.