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Reader Comments on ::   BFRS-8 Operating Segment
Dear Readers,

In continuation to the above clarification, for an entity to ascertain 'Similar economic characteristics', the following could be the parameters to consider:

(i) The nature of the product and services
(ii) The nature of the production processes
(iii) The type or class of client for their products and services
(iv) The methods used to distribute their products or provide their services
(v) The nature of the regulatory environment ( banking, insurance or public utilities)
Posted By: Sonam Wangdi      Posted on: 2018-05-15 11:57:13
BFRS 8, para 12 does not elaborate on the meaning of ‘similar economic characteristics’ except to say that operating segments that share similar economic characteristics would be expected to exhibit a similar long-term financial performance. In addition, determining whether operating segments have ‘similar economic characteristics’ requires the use of judgment. The probable economic indicators that could be used to determine 'similar economic characteristics' are profit margin spreads, sales growth rates etc (para 22(aa)).
Posted By: Sonam Wangdi      Posted on: 2018-05-15 11:57:13
As per BFRS 8 para 12,they have use the word 'economice characteristics'
could you please elobrate the meaning as the standard want to convey.
Posted By: menuka chhetri      Posted on: 2018-05-15 11:57:13

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