As per Ind AS 108, Identification is based on 3 criteria. That is any operating segment should have 3 characteristics.
Component of entity for which discrete financial information is available. (Income, expense, assets, liability)
Component of entity whose performance is evaluated and reviewed by the Chief Operating Decision Maker (CODM) for the purpose of allocation of resources and better decision making.
Component of entity which generates revenue on its own and incurs expenditure too. It also includes a component which has already incurred expenses and is yet to generate revenue.
Quantitative thresholds
Separate financial information should be available for and presented for the operating segments that meet the following criteria’s:
Revenue of that segment should be at least 10% of the total revenue. (Revenue includes external as well as inter-segment revenue)
Profit or loss from that segment should be at least 10% of the total entity.
