The report also says Fairfax's previous accounting standards have not allowed recognition of the value of Domain, so the creation of a new reporting segment made sense.
However, the change means that Fairfax will book a close to $1 billion pre-tax non-cash writedown on its publishing assets.
Fairfax's Australian Metro Media division will record a $484.9 million pre-tax impairment, while the Australian Community Media will book a $408.8 million pre-tax impairment. The company's New Zealand business will report a $95.3 million pre-tax impairment.
The Fin Review adds the change in accounting structures will again re-ignite speculation about whether Fairfax could look to sell Domain or spin it off into its own ASX vehicle.
Asked about a possible sale or listing of Domain, Xiradis said: "That's always been a possibility, but I think that managements' objective here is to show the value of Domain within Fairfax."
Fairfax Media chief executive Greg Hywood reiterated that there are no plans to remove Domain from the rest of Fairfax.