The financial statements of business entities represent basic piece of information that external users have at their disposal. In Croatia, according to the Accounting Act, they are compiled in accordance with IASs, IFRSs and HSFIs. In the thesis, the subject of research were the financial statements of business entities listed on the official market of the Zagreb Stock Exchange. More specifically, the application of IFRS 8 which governs the reporting by business segments was evaluated, and two hypotheses have been set. The first hypothesis H1 assumed that companies applied IFRS 8 in their reports, and the other H2 assumed that the segment with he highest revenues was the most profitable. After evaluation, both hypotheses were rejected. Specifically, only 35% of companies in sample met the assumption of the first hypothesis, while the assumption of the second hypothesis met 33.33% of the observed companies. The results of the research may suggest that reporting by business segments is not that much important for Republic of Croatia and is not yet taken root in the financial statements. In addition, it can be concluded that those business segments that companies are most engaged in and on which is allocated the most resources of the companies do not bring relatively highest profits, meaning that smaller business segments generate relatively more profits to the company.