The International Accounting Standards Board (IASB) has completed its first ever Post-implementation Review (PIR) of a standard, and has concluded that IFRS 8 Operating Segments is working as expected.

In its assessment, IASB says the use of the management perspective has made communication by management with investors easier, while the incremental costs of the implementation of IFRS 8 are low. In addition, the standard achieved convergence with standards issued by FASB, as expected, and at low cost.

The PIR concluded that preparers generally think that the standard works well. Auditors, accounting firms, standard-setters and regulators generally support the standard, but have made some suggestions to improve its application.

However, views from investors were mixed. While some thought having audited information about how management views the business was valuable, others were sceptical, believing this might be reported in such a way as 'to obscure the entity's true management structure (often as a result of concerns about commercial sensitivity) or to mask loss-making activities within individual segments'.

IASB added the requirement to have a PIR as part of it due process in 2007, saying such reviews would normally conducted two years after the global application of a new standard or a significant amendment to an existing standard. Following feedback, the scope of PIRs was broadened in 2012 to include a formal public consultation.

Hans Hoogervorst, chairman of the IASB said: 'This first review shows us that overall IFRS 8 achieved its objectives, although the report has highlighted some areas to the IASB where further targeted improvements could be made.'