Segment reporting highlights for technology companies

All public technology companies should be aware of the new disclosure requirements regarding segment reporting for the December 31, 2024 financial statements. The Financial Accounting Standards Board (FASB) amended, in November 2023, the US generally accepted accounting principles (GAAP) requirements for disclosing segment information, known as Topic 280, through Accounting Standards Update (ASU) 2023-07.

This publication is intended to be a reminder as you prepare the required disclosures. In this publication, we cover:

• A reminder on changes introduced by ASU 2023-07 and Securities and Exchange Commission (SEC) staff clarifications.
• Challenges faced by technology companies, including the SEC’s recent focus on segment reporting disclosures.
• What companies can still do to ensure successful implementation of changes.

In this paper, "Segment reporting highlights for technology companies," key considerations are outlined for technology companies as they finalize their segment reporting disclosures.