IFRS 8 Segment Reporting in Bangladesh: Insights into Practice and Determinants

Abstract

This study examines IFRS 8 (International Financial Reporting Standards Operating Segment) segment reporting compliance, disclosure, and its determinants among listed manufacturing companies in Bangladesh. Utilizing a content analysis of the annual reports, the paper transforms IFRS 8 segment reporting requirements into a binary disclosure index to quantify compliance and disclosure levels. It found that 64.13% of the sampled companies have identifiable segment reports, while 26.08% of companies have an IFRS 8 compliance score greater than 0. The average compliance score is 15.79% and average disclosure score is 11.68%. The regression analysis found that firm size, Big 4 audit, and full segment reporting type are positively associated with compliance and disclosure, while earnings per share (EPS) is negatively associated. The findings support Proprietary Cost, Resource-Based View, Agency and Ownership Structure theories, alongside revealing issues of weak enforcement and low reporting quality. This study highlights the urgent need for stronger oversight, capacity building, and regulatory incentives to improve IFRS 8 compliance and enhance stakeholder confidence in the market.