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Segment Reporting Checker — Ind AS 108.

Enter each operating segment's revenue, profit or loss and assets. The checker runs all three 10% quantitative thresholds, applies the 75% external-revenue coverage test, and flags the entity-wide disclosures every entity owes regardless of segment count.

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Operating segments

Per segment, as reported to the CODM — same measurement basis the CODM uses internally

Segment	External revenue	Inter-segment revenue	Profit / (loss)	Assets

Amounts in any consistent unit (₹ lakh assumed above) — same unit throughout. Inter-segment revenue means sales/transfers to other segments of the same entity.

10% quantitative thresholds — para 13

(a) Revenue

Combined (ext.+inter-seg.): ₹980 L

10% = ₹98 L

(b) Profit or loss

Greater of combined profit (₹105 L) / combined loss (₹20 L): ₹105 L

10% = ₹10.5 L

(c) Assets

Combined assets: ₹1,100 L

10% = ₹110 L

Segment	Revenue ≥10%	P&L ≥10%	Assets ≥10%	Verdict
Segment A	✓	✓	✓	Reportable
Segment B	✓	✓	✓	Reportable
Segment C	✓	✓	✓	Reportable
Segment D	—	—	—	Combined — "all other"

Reportable segments

of 4 segments

External-revenue coverage

94.4%

75% test — para 15

Coverage route

Met by 10% winners

Aggregation criteria — para 12

Two or more operating segments below the thresholds MAY be aggregated into one reportable segment only if aggregation is consistent with the standard's core principle (para 20) and the segments have similar economic characteristics, and are similar in each of:

the nature of the products and services;
the nature of the production processes;
the type or class of customer for their products and services;
the methods used to distribute their products or provide their services; and
if applicable, the nature of the regulatory environment — e.g. banking, insurance, utilities.

This is a judgement call, not something this calculator can test from the numbers alone — document the "similar economic characteristics" analysis separately.

Everything on a CODM basis — para 25-28

Segment revenue, profit/loss, assets and liabilities are measured on the same basis the Chief Operating Decision Maker (CODM) uses internally (para 25) to allocate resources and assess performance — not necessarily on Ind AS recognition/measurement principles. Allocations made only for internal reporting (e.g. depreciation allocated to segments) are included if the CODM uses that allocated figure; items the CODM does not review by segment are excluded. Because of this, segment totals routinely diverge from the standalone financial statements — para 28 requires a reconciliation of total reportable segment revenue, profit or loss, assets and (if reported) liabilities to the entity's corresponding amounts, with material reconciling items separately identified and described.

Entity-wide disclosures — paras 31-34

Required from every entity within the standard's scope, regardless of how many reportable segments the tests above produce — including an entity with a single reportable segment (para 31) — unless the information is not available and the cost to develop it would be excessive.

Products and services (para 32) — revenue from external customers for each product/service or each group of similar products/services.

Geographical areas (para 33) — revenue from external customers attributed to the entity's country of domicile vs all foreign countries in total (and to an individual foreign country if material); non-current assets on the same split.

Major customers (para 34) — if revenue from transactions with a single external customer is 10% or more of entity revenue, disclose that fact, the total revenue from each such customer, and which segment(s) report it. A group of entities known to the reporting entity to be under common control is treated as a single customer; government (national/state/local) counts as a single customer.

Largest single-customer external revenue (test the 10% major-customer trigger)

Same unit as the segment table above. Total external revenue currently entered: ₹900 L.

Below the 10% major-customer threshold on the figure entered.

On the audit file

Segment disclosure is a judgement-heavy note that auditors re-perform every year. segment numbers, tied to the CODM pack.

CORAA pulls the trial balance cuts that feed management's internal segment reporting and flags where the CODM basis diverges from the statutory books — so the para 28 reconciliation isn't rebuilt from scratch every year.

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How the Ind AS 108 reportable-segment test works

Ind AS 108 Operating Segments starts from the management (CODM) view: an operating segment is a component of the entity whose operating results are regularly reviewed by the Chief Operating Decision Maker to allocate resources and assess performance, and for which discrete financial information is available. Everything downstream — which segments exist, and the amounts reported for them — follows that internal, "through the eyes of management" basis, which can differ from Ind AS recognition and measurement principles used in the financial statements. Because of that gap, para 28 requires a reconciliation of total segment revenue, profit or loss and assets to the corresponding entity totals.

An operating segment becomes a REPORTABLE segment if it crosses any one of three 10% quantitative thresholds (para 13): its revenue — external plus inter-segment — is 10% or more of the combined revenue of all operating segments; the absolute amount of its reported profit or loss is 10% or more of the greater, in absolute amount, of the combined profit of all segments that made a profit and the combined loss of all segments that made a loss; or its assets are 10% or more of the combined assets of all operating segments. Segments below all three thresholds may still be combined and separately reported if management believes information about them would be useful, and non-reportable segments are lumped into an "all other segments" residual category with its sources described.

A second, independent check follows the size test: the total external revenue reported by all reportable segments combined must be at least 75% of the entity's consolidated/total external revenue (para 15). If the reportable segments identified by the 10% tests fall short of 75%, additional segments must be added — even ones that failed all three thresholds — until the 75% coverage is reached. Two or more sub-threshold segments may instead be AGGREGATED into a single reportable segment, but only where aggregation is consistent with the standard's core principle and the segments share similar economic characteristics plus similarity across five specific factors (para 12) — this is a qualitative judgement, not a numeric test.

Worked example — four operating segments

An entity has four operating segments. Segment D fails all three 10% thresholds on its own, so the 75% external-revenue coverage test is checked before finalising the reportable-segment list.

Inputs

Segment AExt. ₹400L, Inter ₹50L, P&L ₹60L, Assets ₹500L

Segment BExt. ₹300L, Inter ₹20L, P&L ₹40L, Assets ₹350L

Segment CExt. ₹150L, Inter ₹10L, P&L −₹20L, Assets ₹200L

Segment DExt. ₹50L, Inter ₹0, P&L ₹5L, Assets ₹50L

Output

Combined revenue / 10%₹980L / ₹98L

P&L denominator / 10%greater of ₹105L profit, ₹20L loss = ₹105L / ₹10.5L

Reportable segmentsA, B, C (each clears at least one 10% test)

75% coverage check(400+300+150)/900 = 94.4% — met without adding D

A, B and C each cross at least one 10% threshold on their own, so they are reportable without needing the 75% top-up. Their combined external revenue (₹850L) is already 94.4% of the entity's ₹900L total external revenue, comfortably above the 75% floor — so Segment D stays combined into "all other segments" rather than being forced in as an additional reportable segment.

Common mistakes

Using accounting profit/loss instead of the CODM measure

The 10% profit-or-loss test uses the figure reviewed by the CODM, which may already exclude/include items differently from the Ind AS statement of profit and loss (e.g. unallocated corporate costs, internal transfer pricing). Running the test off the statutory P&L split by segment, instead of the management pack the CODM actually reviews, is a common error.

Getting the profit/loss denominator wrong

The denominator is the GREATER, in absolute amount, of (i) combined profit of all segments in profit and (ii) combined loss (as an absolute number) of all segments in loss — not net profit/loss of the whole entity, and not a simple sum that lets gains and losses offset.

Stopping at the 10% tests and skipping the 75% check

Even when the 10% winners look sufficient, para 15 requires an explicit check that their combined EXTERNAL revenue (not total revenue including inter-segment) is at least 75% of entity revenue. If it is not, more segments must be added by size until it is — this is a mandatory second gate, not optional.

Treating aggregation as a numeric shortcut

Aggregating two sub-threshold segments to avoid extra disclosure is only permitted when they share similar economic characteristics AND are similar across all five para 12 factors (products/services, production process, customer type, distribution method, regulatory environment). It is a judgement call requiring documented rationale, not a way to dodge the 75% test.

Skipping entity-wide disclosures for a single-segment entity

Product/service (para 32), geography (para 33) and major-customer (para 34) disclosures apply even when the entity has only ONE reportable (or operating) segment — para 31 states this applies to every entity in scope regardless of segment count. They are not conditional on having multiple segments, and are commonly missed on smaller, single-line-of-business audits.

Frequently asked questions

What are the three Ind AS 108 quantitative thresholds?+

Under para 13, a segment is reportable if any one of: (a) its revenue (external + inter-segment) is ≥10% of combined revenue of all operating segments; (b) the absolute amount of its profit or loss is ≥10% of the greater (in absolute amount) of combined profit of segments in profit, or combined loss of segments in loss; (c) its assets are ≥10% of combined assets of all operating segments.

What is the 75% test under Ind AS 108?+

Para 15 — if the total EXTERNAL revenue reported by segments identified as reportable is less than 75% of the entity's total external revenue, additional operating segments must be identified as reportable (even if they fail all three 10% thresholds) until at least 75% of entity revenue is covered.

Can sub-threshold segments be combined?+

Yes — para 12 permits aggregating two or more operating segments below the thresholds into one reportable segment only if aggregation is consistent with the standard's core principle and the segments have similar economic characteristics and are similar in products/services, production process, customer type, distribution method, and (if applicable) regulatory environment.

What happens to segments that never become reportable?+

Information about them is combined and disclosed as an "all other segments" category, separate from any reconciling items, with the sources of that revenue described.

What are the entity-wide disclosures and who must give them?+

Every entity in scope — including one with a single reportable segment (para 31) — must disclose (unless unavailable/excessively costly): revenue by product/service or group (para 32); revenue and non-current assets split between the country of domicile and foreign countries (para 33); and, if any single external customer contributes ≥10% of entity revenue, that fact, the revenue amount, and the reporting segment(s) (para 34).

What is the CODM and why does it matter?+

The Chief Operating Decision Maker is a function, not necessarily a single person or title — whoever regularly reviews operating results to allocate resources and assess performance. Segment identification and the AMOUNTS reported for each segment follow the CODM's internal basis, which can diverge from Ind AS measurement — hence the mandatory reconciliation to entity totals under para 28.

Does Ind AS 108 apply to every company?+

It applies to entities whose debt or equity instruments are traded in a public market (or are in the process of issuing them), and to any entity that voluntarily provides segment information. Ind AS 108 mirrors IFRS 8 in substance — verify applicability against the exact scope paragraph and any group-level consolidation exemption before concluding it does not apply.

Authoritative sources

Ind AS 108 — Operating Segments — ICAI-hosted Ind AS text, notified under the Companies (Indian Accounting Standards) Rules 2015. Paras 12-13 (aggregation, thresholds), 15-16 (75% test, all-other-segments), 20 (core disclosure principle), 25-28 (CODM measurement, reconciliation), 31-34 (entity-wide disclosures, incl. single-segment scope).

Always confirm against the latest version of the source. Regulations evolve and amendments are common.

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Last reviewed: 2026-07-29 · For informational purposes only — not professional advice.