Definitions of Segment Revenue, Expense,Definitions of Segment Revenue, Expense, Result, Assets, and Liabilities

Definitions of Segment Revenue, Expense, Result, Assets, and Liabilities

16. The following additional terms are used in this Standard with the meanings specified.

Segment revenue is revenue reported in the entity’s income statement that is directly attributable to a segment and the relevant portion of entity revenue that can be allocated on a reasonable basis to a segment, whether from sales to external customers or from transactions with other segments of the same entity. Segment revenue does not include:

(a) [Deleted by the IASB];

(b) interest or dividend income, including interest earned on advances or loans to other segments, unless the segment’s operations are primarily of a financial nature; or

(c) gains on sales of investments or gains on extinguishment of debt unless the segment’s operations are primarily of a financial nature.

Segment revenue includes an entity’s share of profits or losses of associates, joint ventures, or other investments accounted for under the equity method only if those items are included in consolidated or total entity revenue.

Segment revenue includes a joint venturer’s share of the revenue of a jointly controlled entity that is accounted for by proportionate consolidation in accordance with AASB 131 Interests in Joint Ventures.

Segment expense is expense resulting from the operating activities of a segment that is directly attributable to the segment and the relevant portion of an expense that can be allocated on a reasonable basis to the segment, including expenses relating to sales to external customers and expenses relating to transactions with other segments of the same entity. Segment expense does not include:

(a) [Deleted by the IASB];

(b) interest, including interest incurred on advances or loans from other segments, unless the segment’s operations are primarily of a financial nature;

(c) losses on sales of investments or losses on extinguishment of debt unless the segment’s operations are primarily of a financial nature;

(d) an entity’s share of losses of associates, joint ventures, or other investments accounted for under the equity method;

(e) income tax expense; or

(f) general administrative expenses, head-office expenses, and other expenses that arise at the entity level and relate to the entity as a whole. However, costs are sometimes incurred at the entity level on behalf of a segment. Such costs are segment expenses if they relate to the segment’s operating activities and they can be directly attributed or allocated to the segment on a reasonable basis.

Segment expense includes a joint venturer’s share of the expenses of a jointly controlled entity that is accounted for by proportionate consolidation in accordance with AASB 131.