4.6 Segment Reporting

As shown in the table below, under IFRS Accounting Standards, operating segments are identified on the basis of the “core principle” regardless of the form of organization used, while under U.S. GAAP, operating segments are identified on the basis of products and services.

Topic	IFRS Accounting Standards (IFRS 8)	U.S. GAAP (ASC 280)
Entity-wide disclosures of long-lived assets by geography	Under IFRS Accounting Standards, noncurrent assets are defined as assets that do not meet the definition of a current asset. Therefore, they would include intangible assets.	Long-lived assets within the entity-wide disclosures do not include intangible assets.
Entities with a matrix form of organization	An entity is required to identify operating segments on the basis of the “core principle” regardless of the form of organization used. Under IFRS 8, the core principle is that operating segments must be identified in a manner that enables users of the financial statements “to evaluate the nature and financial effects of the business activities in which [the entity] engages and the economic environments in which it operates.” Management will therefore be required to exercise judgment in determining which of the bases of segmentation satisfies this objective.	An entity with a matrix form of organization is required to determine operating segments on the basis of products and services rather than on the basis of geographical components or other information.