Segment disclosures under IFRS 8’s management approach: has segment reporting improved?

This study examines how the International Financial Reporting Standard (IFRS 8) affected the segment disclosure practices of firms in Spain and what are the antecedents of the decision to provide additional information under IFRS 8, estimating a logit regression on a binary dependent variable measuring whether firms provided additional information under IFRS 8 or not with firms’ characteristics as independent variables. The results show that a significant number of firms continue to report segment information on basis inconsistent with their organisational structure and a large proportion of the firms provided little or no additional information under IFRS 8. Results also show that firm size is significantly related to the decision to provide additional information under IFRS 8.