IFRS 8 - Operating Segments is an accounting standard issued by the International Accounting Standards Board (IASB) that focuses on providing transparency in how entities operate and report their financial results. It defines an operating segment as a component of an entity that generates revenue and incurs expenses, whose financial information is internally reviewed by the entity's chief operating decision maker. The standard requires entities to disclose relevant information about their revenue, profit or loss, assets, and liabilities for each operating segment, providing stakeholders with clarity on an entity's financial performance and structure.

For example, a multinational corporation may have separate operating segments by geography (e.g., North America, Europe, and Asia) or by product type (e.g., electronics, automotive, and appliances). IFRS 8 would mandate the reporting of financial data independently for each of these segments. Such disclosure assists investors and analysts in assessing the economic drivers of the business and making informed decisions.

The application of IFRS 8 ensures that the reported segment information reflects the internal management approach, aligning external reporting with what management uses to run the business, thus improving comparability and relevance of financial data.