FASB proposes improvements to segment disclosures
Defining Issues | October 2022
Proposals would require disclosure of significant segment expenses, and enhance disclosures in annual and interim reporting.
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
Download the document:
KPMG comment letter
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