Segment Reporting under IFRS 8 – Reporting Practice and Economic Consequences

Nienhaus M

Abstract
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.


Publication type
Book (monograph)

Peer reviewed
Yes

Publication status
Published

Year
2015

Number of pages
248

Publisher
Peter Lang

Place
Frankfurt

Language
English