The European Securities and Markets Authority
(ESMA) has published a report on its post-implementation review of
IFRS 8 Operating Segments.

The report discusses the application of IFRS 8
requirements in Europe, focusing on the areas posing significant
challenges to investors, preparers and enforcers.

The report also presents recommendations to
enhance the application of the standard.

The conclusions reached are that the
implementation of IFRS 8 resulted in a fairly similar level of
information compared to its predecessor IAS 14, and there is
homogeneity in the issues faced by European authorities when
enforcing the standard. This stems from a combination of weaknesses
in the standard and a failure to fully comply with its requirements
by issuers.

ESMA has also published a consultation paper
‘Considerations of Materiality in Financial

As the practical application of the concept of
materiality amongst preparers, auditors, users of the financial
reports and, in some instances, accounting enforcers is
contentious, ESMA has issued a consultation paper to seek feedback
from interested parties on their understanding of materiality.

Responses to the consultation paper should be
submitted by 29 February 2012.