Evaluation of TFRS 8 operating segments standards

The needs of the owners and the managers of the enterprises for information are constantly increasing and this information is related to various parts of the enterprise. The need for segment operating results has inceased because of the variety in the products that the enterprises have produced and of their operation in different geographical areas. The users of financial information need financial information that the enterprises have presented at segment-base in order to better understand the performance of the enterprise and to make a comparison among enterprises. It is only possible by the help of the information reported at segment-base to diagnose which productions that the enterprises have produced are profittable, which sale areas have a higher perfomance than the others, and which production areas use the capacity and the resources more efectively than the others,The operational areas of the enterprises have vasted with the start of the conglomeration in the early 1960s. While some of these enterprises volunteered to prepare reports at segment-base, the need for presentation of the financial information at segment-base rose in the late 1960s. This case arouse the attention of the international accountancy committees and they have made various regulations on this field since 1970s. As for our country Standards for Segment Reporting of the Financial Information (TMS11) was released by Turkey Accounting Standards Committee in April, 1996. Afterwards, the Notice 24 was released about Turkey Accounting Standards for Segments (TMS 14) in the official journal numbered as 26097 and dated as 03.03.2006. These standards were soon changed and Turkey Financial Reporting Standards for Operating Segments (TFRS 8) was released in the official journal dated as 15.07.2007 and numbered as 26583. Within the approval of TFRS 8 Operational Segments Reporting Standards, TMS 14 Standards for Segment Reporting was abolished.This study has been prepared in order to observe TFRS 8 Operational Segments Standards, which has brought a new perpective into the information that the enterprises will report; to compare it with TMS 14 Standards for Segment Reporting; and to make an evaluation of the problems met during its practice in Turkey.