Defining Issues | October 2022

Insight

FASB proposes improvements to segment disclosures

Proposals would require disclosure of significant segment expenses, and enhance disclosures in annual and interim reporting.

Valerie Boissou

Valerie Boissou

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1723

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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