Under IFRS 8, certain reconciliations, such as total reportable segment revenues to the entity's revenues, are required. Why are these reconciliations required?
A)To prove that the consolidated financial statements balance
B)To ensure that all reportable segments have been identified
C)To show the relative contribution of each segment to the total
D)To show how reportable segments were identified

Question

Quizplus · Accepted Answer

The reconciliations required under IFRS 8 are intended to show the relative contribution of each reportable segment to the total, which helps users of the financial statements understand the entity's performance and risks. These reconciliations also help to ensure that all reportable segments have been identified and to provide transparency in the segment reporting process. While the reconciliations may indirectly support the balance of the consolidated financial statements, this is not their primary purpose. The identification of reportable segments is addressed separately in the standard, and the reconciliations do not explicitly show how these segments were identified.

Under IFRS 8, Certain Reconciliations, Such as Total Reportable Segment