Principles of aggregation and disaggregation

Learning objectives

• Explain the principles of aggregation and disaggregation.L2
• Determine, for a case, whether items must be disaggregated.L2, L3

Normative references

• IFRS 18 §41An entity classifies and aggregates assets, liabilities, equity, income, expenses and cash flows into items on the basis of shared characteristics and disaggregates items that do not share characteristics, so that the primary financial statements provide useful structured summaries and the notes provide material information, without aggregation or disaggregation obscuring material information; the Standard sets no numerical threshold and refers to the application guidance (B16 to B23).

Original summaries of the paragraphs (reference register), never a quotation of the standard.

2 questions

• Cobalt SA presents a line "Service revenue" of EUR 3,000,000. It comprises recurring maintenance contracts, which share common characteristics, and one-off training sales, which share none with them and whose amount is material (case facts). What must Cobalt do with this line?L2
• A reporting manager summarises the aggregation and disaggregation principles of IFRS 18 for Tamaris SA. Which of the manager's sentences is wrong?L3