As many large conglomerates are involved in several lines of business, the investor demands information available to them so that they can see how each of these segments is performing. This IFRS standard is in place to document how these operating segments should be disclosed in the financial statements.
IFRS are principles based standards, rather than strict rules based standards that govern international accounting. IFRS standards differ from IAS standards in that they began being introduced in 2001, whereas IAS were produced prior to this date by the IASC, or the International Accounting Standards Committee. Therefore when an IFRS standard and an IAS standard conflict, the IFRS is generally more authoritative due to being more recent.
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