Other Disclosure MattersOther Disclosure Matters

Other Disclosure Matters

74. If a business segment or geographical segment for which information is reported to key management personnel is not a reportable segment because it earns a majority of its revenue from sales to other segments, but nonetheless its revenue from sales to external customers is 10 per cent or more of total entity revenue from sales to all external customers, the entity shall disclose that fact and the amounts of revenue from (a) sales to external customers and (b) internal sales to other segments.

75. In measuring and reporting segment revenue from transactions with other segments, inter-segment transfers shall be measured on the basis that the entity actually used to price those transfers. The basis of pricing inter-segment transfers and any change therein shall be disclosed in the financial report.

76. Changes in accounting policies adopted for segment reporting that have a material effect on segment information shall be disclosed, and prior period segment information presented for comparative purposes shall be restated unless it is impracticable to do so. Such disclosure shall include a description of the nature of the change, the reasons for the change, the fact that comparative information has been restated or that it is impracticable to do so, and the financial effect of the change, if it is reasonably determinable. If an entity changes the identification of its segments and it does not restate prior period segment information on the new basis because it is impracticable to do so, then for the purpose of comparison the entity shall report segment data for both the old and the new bases of segmentation in the period in which it changes the identification of its segments.

77. Changes in accounting policies applied by the entity are dealt with in AASB 108. AASB 108 requires that changes in accounting policy shall be made only if required by an Australian Accounting Standard, or if the change will result in reliable and more relevant information about transactions, other events or conditions in the financial report of the entity.

78. Changes in accounting policies applied at the entity level that affect segment information are dealt with in accordance with AASB 108. Unless a new Australian Accounting Standard specifies otherwise, AASB 108 requires that:

(a) a change in accounting policy shall be applied retrospectively and prior period information restated unless it is impracticable to determine either the cumulative effect or the period-specific effects of the change;

(b) if retrospective application is not practicable for all periods presented, the new accounting policy shall be applied retrospectively from the earliest practicable date; and