A practical guide to IFRS 8 for investment funds

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IFRS 8, ‘Operating segments’, issued in November 2006, provides guidance on the presentation of segment reporting and replaces IAS 14, ‘Segment reporting’. As the scope of IFRS 8 is broader than the scope of the previous IAS 14 and minimum disclosures are required also for entities with only one reportable segment, investment funds that were not required to disclose segmental information in the past might be required to amend their financial statements to comply with the new requirements.

An investment fund discloses information that enables users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates [IFRS 8.1]. This publication addresses the questions that arise when applying IFRS 8 in practice to mutual funds, hedge funds and private equity funds.

IFRS 8 applies for annual periods beginning on or after 1 January 2009. Earlier application is permitted if that fact is disclosed.

The publication, which is based on the requirements of IFRS 8 applicable to financial periods on or after 1 January 2009, is not a substitute for reading the standards and interpretations themselves or for professional judgement as to fairness of presentation. They do not cover all possible disclosures that IFRS 8 requires, nor do they take account of any specific legal framework. Further specific information may be required in order to ensure fair presentation under IFRS. We recommend that readers refer to our publication IFRS disclosure checklist. Additional accounting disclosures may be required in order to comply with local laws and stock exchange or other regulations.