IMMOEAST Annual Report 2006/07

222 IMMOEAST Annual Report 2006/07
IFRS 8.14
IFRS 8.15
IFRS 8.19
IFRS 8.23
IFRS 8.27
IFRS 8.22
Two or more operating segments may be aggregated into a single operating segment if they have similar economic
characteristics that lead to expectations of comparable long-term development and if they meet the aggregation
criteria defined in IFRS 8.12.
These rules largely reflect the provisions of IAS 14. However in contrast to IAS 14.35, the segment is no longer
required to earn the majority of its revenues from sales to external customers.
Additional operating segments must be defined until at least 75% of the total segment revenue is generated by sales
to external customers. There is no predefined order for this selection.
Segments that were classified as significant in the previous year must still be presented separately if they are of
continuing significance. Segments that are considered to have a special relevance are also designated as reportable,
e.g. rapidly growing fields of business or high-risk areas.
In agreement with SFAS 131.24, IFRS 8.19 recommends limiting the number of reportable segments to ten so as not
to endanger relevance and understandability. However, there is no limit on the number of reportable segments and
this recommendation is solely related to voluntary segment disclosures.
In accordance with the management approach, the entity must disclose the measure of segment profit or loss that is
used for internal management and reporting purposes. The following amounts must also be disclosed if they are
included in reported profit or loss, or are regularly provided to management:
• segment revenues from external customers;
• intersegment revenues;
• interest expense and income (not netted out, unless this figure is used for internal management purposes);
• material items of income and expense as defined in IAS 1.86;
• the entity’s interest in investments consolidated at equity;
• income tax expense or income;
• material non-cash items other than depreciation, amortisation and impairment charges.
• segment liabilities must also be disclosed if these figures are used for internal management purposes.
Additional information must also be provided on assets if the relevant amounts are included in segment assets or
are otherwise regularly provided to management:
• the carrying values of investments consolidated at equity;
• additions to non-current assets.
In accordance with IFRS 8.27, the quantitative data provided on the segments should be accompanied by explanations
covering – as a minimum – the accounting and valuation methods applied. In addition, general information
should be disclosed to provide insight into the nature of business activities and internal reporting. This information
is designed to support an understanding of the presentation of data and identification of segments in accordance
with the management approach. IFRS 8.22 requires the disclosure of:
• the factors used to identify the reportable segments, including the internal organisational structure, and
• the products and services from which the individual segments derive their revenues.
The central decision-maker of IMMOEAST is the Executive Board as a collegial body. Internal reporting to the Executive
Board is based on country information that comprises the income statements from the individual countries
including the related elimination of income, expenses and interim profits as well as the holding companies that are
allocated to the relevant country operating organisations. The Executive Board is also provided with information on
country-specific cash flows.