FASB proposes improvements to segment disclosures

The proposed ASU addresses stakeholder requests for more decision-useful information about reportable segments – expanding the breadth and frequency of segment disclosures.

Applicability

• Public entities (as defined by ASC 280) and other entities that report segment information under ASC 280

Relevant dates

• October 6, 2022 – FASB issued proposed ASU
• December 20, 2022 – Comments due 
  

Key impacts

The proposed amendments would require a public entity to:

• Disclose significant segment expenses regularly provided to the chief operating decision maker (CODM)
• Provide, in interim periods, all reportable segments profit or loss and asset disclosures currently required annually by ASC 280, as well as those introduced by the proposed ASU
• Provide all disclosures required by the proposed ASU and all existing segment disclosures in ASC 280 when the public entity has a single reportable segment
• Disclose the title and position of the CODM
• Disclose the amount and composition of other segment items by reportable segment

The proposed amendments would also allow a public entity to disclose more than one measure of segment profit or loss if the CODM regularly reviews multiple measures.

Report contents

• Fast facts, impacts and actions 
• Background 
• Proposed guidance 
• Effective dates and transition

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