The CODM regularly reviews measures of segment profit or loss. However, the measures do not correspond consistently with allocation of assets to reportable segments. Consequently, the information is not permitted in financial statements under IFRS.

Question

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Under IFRS 8 Operating Segments, the CODM (Chief Operating Decision Maker) reviews segment performance to make decisions about resources to be allocated to the segment and assess its performance. The standard does not require that the profit or loss measures correspond directly with the allocation of assets to reportable segments. The focus is on the information regularly reviewed by the CODM, even if it does not correspond to the measures used in the entity's financial statements.

The CODM Regularly Reviews Measures of Segment Profit or Loss