Questions:
What is operating segment disclosure? When does IFRS 8 allow aggregating operating segments?

Techno sells computer games. Sales are made through the website as well as through brick and mortar stores. The products sold online and in stores are the same. Techno sells new releases for $40 in its stores, but $30 online. Internal reports used by the chief operating decision maker show the results of the online business separately from the stores. However, they will be aggregated together for disclosure in the financial statements.

Should Techno's online business sales and high street stores sales be aggregated into a single segment in the operating segments disclosure?

Reference answers:
Operating segment disclosure: A company's disclosure of information about its business components that:
- Earn revenues and incur expenses.
- Have separate financial info.
- Are regularly reviewed by management.

IFRS 8 allows aggregating operating segments if they have similar economic characteristics, products, customers, and distribution methods.

The online business and the high street stores business should be reported separately as two operating segments instead of aggregated into a single segment.

Techno stores and online business sell similar products to similar customers but have different distribution methods (in-store collection vs. delivery) and significant price differences, leading to different gross margins. This suggests separate disclosure may be more appropriate, as the segments may not be similar enough to aggregate.