Hi @vishpendra001
IFRS 8 requires that businesses which are publicly traded to enable users of the financial statements to evaluate the various significant different business activities it engages in - Could be product lines or geographies. These segments, product lines etc could cut across multiple legal entities and business area is one of the organizational structures to enable such kind of reporting, assuming that legal entities are represented by company codes in general.
Hence business area sit at a level above company codes in terms of organizational structure.
Hope this helps
Thanks & Regards
Sanil Bhandari
You must be a registered user to add a comment. If you've already registered, sign in. Otherwise, register and sign in.