GAS 3 - Segment reporting

Publication Date:
20.12.1999
Effective Date:
01.01.1999
Withdrawal:
31.12.2020
Last Revision:
22.09.2017

How to order
The German Accounting Standards (GAS) can be purchased here in printed form or as a online database at Schaeffer-Poeschel publisher or can be purchased (individually for each standard) as a PDF file at Genios.

Status: Publication of the authoritative German version by the Federal Ministry of Justice and Consumer Protection

  • Adopted by the German Accounting Standards Board (GASB) on 20 December 1999. Publication of the authoritative German version by the Federal Ministry of Justice under section 342(2) of the HGB on 31 May 2000 (Federal Gazette No. 103, p. 10193).
  • Revised paragraph 3 sentence 1, paragraph 5, paragraph 6, paragraph 8, and paragraph 51 adopted by GASB on 7 November 2003. Publication of the revised authoritative German version by the Federal Ministry of Justice under section 342(2) of the HGB on 2 July 2004 (Federal Gazette No. 121a).
  • Revised paragraph 3, paragraph 3a, paragraph 3b, paragraph 6, paragraph 8, and paragraph 51 adopted by GASB on 15 July 2005. Publication of the revised authoritative German version by the Federal Ministry of Justice under section 342(2) of the HGB on 31 August 2005 (Federal Gazette No. 164).
  • Revised paragraphs 3a, 3b, 4, 5, 8, 30, 32, 33, 40, 42, 43, 44, 49, and 51, and new paragraphs 36a, 52, and 53, as well as Appendices 2, 3, and 4 adopted by the Accounting Standards Committee of Germany (ASCG) on 21 April 2016. Publication of the authoritative German version by the Federal Ministry of Justice and Consumer Protection under section 342(2) of the HGB on 21 June 2016.
  • Revised paragraph 3b adopted by the Accounting Standards Committee of Germany (ASCG) on 22 September 2017. Publication of the authoritative German version by the Federal Ministry of Justice and Consumer Protection under section 342(2) of the HGB on 4 December 2017.
  • GAS 3 Segment reporting of 20 Decemebr 1999 (Federal Gazette of 31 May 2000, as most recently amended by German Amendment Accounting Standard No. 8 of 22 Septemner 2017 (Federal Gazette of 4 December 2017), is withdrawn with GAS 28 Segment reporting; it shall be applied for the last time to the financial year that begins before or on 31 December 2020.

Zusammenfassung

The objective of segment reporting is to provide information on the principal business areas of an entity and on its related activities, in order to give a better insight into the financial position and performance of the separate segments and therefore into the corresponding risks and returns.

The Standard applies to all parent entities which present segment information in accordance with section 297 (1) sentence 2 of the HGB as a component that may supplement their consolidated financial statements. Other entities that disclose segment information voluntarily are encouraged to comply with this Standard.

An entity shall report segment information on the basis of its business segments. These are derived from the internal organisational and reporting structure of the entity, whereby it is assumed that the structure will reflect the various risks and returns of the activities of the entity.

If an entity has more than one potential basis for determining segments, then management shall select the basis which best reflects the structure of risks and returns. Segments with substantially similar risks and returns may be combined.

A business segment is always a reportable segment if revenue from external customers and other segments, the segment result or the segment assets are 10% or more of the total amount for the entity.

The decision tree for reportable segments is presented in the graphic in Appendix 1.

Segment information must be prepared consistently with the accounting policies used in the consolidated financial statements. The assets and liabilities disclosed for segments must correspond to the income and expenses disclosed for those segments. The segment result can be defined by management, if appropriate, after consideration of industry-specific matters.

Segment information shall be reconciled with the corresponding disclosures in the consolidated financial statements.

Entities are encouraged to disclose comparative figures for the previous period.

The notes to the financial statements shall contain a description of the basis used for determining segments and shall give details of any combinations.

The activities of reportable business segments shall be described. The allocation of products to each segment shall also be described. The basis for geographical segments shall be explained.

If revenues from sales to a single external customer are 10% or more of total revenue from sales to external customers and to other segments, then the full amount and the segment involved shall be disclosed.

The Standard contains sector-specific requirements for segment reporting by credit and financial services institutions (Appendix 2) and by insurance undertakings (Appendix 3).