Segment Information Disclosure: The Case of Intermediate-Size European Listed Companies

• In Event: Concurrent Session 2.2: Disclosure Practices

Abstract

The adoption of the IFRS 8 accounting standard symbolises the IASB's dual commitment: an effort toward convergence and harmonisation with the American standard, but also an effort to optimise the standardisation process through an unprecedented study: a post-implementation review. Many studies have laid the groundwork for an implementation review of the standard, mostly focusing on large firms. However, intermediate-size companies – which are much more numerous – are also faced with the application of IFRS standards. In this context, our study aims to analyse the implementation of IFRS 8 by a sample of intermediate-size European listed companies. Our research questions mainly focus on issues of compliance with the standard and the comparability of segment information reported by intermediate-size European companies. Our findings reveal a lower level of compliance than that observed in previous studies on samples of multinationals. The intermediate-size European companies in our sample use fewer segments and provide less information per segment, without however neglecting voluntary disclosures. A few significant differences emerge between companies depending on their country of domicile and their economic sector.

Authors

• Frederic Demerens, Novancia

• Pascale Delvaille, ESCP Europe

• Anne LeManh, ESCP Europe

• Jean Louis Pare, Novancia

• David Alexander, University of Birmingham - ESCP Europe