Defining Issues | December 2023

Insight

FASB issues ASU requiring new segment disclosures

The ASU enhances current segment disclosures and requires additional disclosures of significant segment expenses.

Valerie Boissou

Valerie Boissou

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1723

John Barbagallo

John Barbagallo

Managing Director, Dept. of Professional Practice, KPMG US

+1 212-954-7258

ASU 2023-07 is in response to stakeholder requests for more decision-useful information about reportable segments.

Applicability

Relevant dates

  • November 27, 2023 -  FASB issues ASU 2023-07
  • ASU 2023-07 is effective for public entities fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted.

Key impacts

The amendments in ASU 2023-07 improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The amendments

  • Introduce a new requirement to disclose significant segment expenses regularly provided to the chief operating decision maker (CODM)
  • Extend  certain annual disclosures to interim periods 
  • Clarify single reportable segment entities must apply ASC 280 in its entirety
  • Permit more than one measure of segment profit or loss to be reported under certain conditions
  • Require disclosure of the title and position of the CODM.

 

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