FASB issues ASU requiring new segment disclosures
Defining Issues | December 2023
The ASU enhances current segment disclosures and requires additional disclosures of significant segment expenses.
ASU 2023-07 is in response to stakeholder requests for more decision-useful information about reportable segments.
Applicability
- ASU 2023-07
- Public entities (as defined by ASC 280)
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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FASB issues ASU - Improvements to reportable segment disclosures
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Valerie Boissou
Partner, Audit, DPP - Accounting, KPMG US
Tim Phelps
Partner, Dept. of Professional Practice, KPMG US