Ind AS-108 Operating Segments 

Ind AS-108 defines operating segments as components of an entity engaged in revenue-generating activities, whose performance is regularly reviewed by the chief operating decision maker, and for which discrete financial information is available. The core principle mandates disclosure enabling financial statement users to evaluate the entity’s business activities and economic environments. Reportable segments are those meeting specific criteria, including quantitative thresholds or management’s judgment of usefulness to users. If total external revenue from segments is less than 75%, additional segments are identified. Quantitative thresholds include revenue, profit/loss, and assets exceeding 10% of the combined totals. Comparative reporting requires restating prior period data for newly reportable segments. Disclosure encompasses factors used to identify segments, product/service revenue sources, and financial data reconciliation with entity totals. It ensures transparency and aids stakeholders in understanding the entity’s operational dynamics and financial performance.