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.
- 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.
Download the document:
FASB issues ASU - Improvements to reportable segment disclosures
Download PDFExplore more
Resource
Handbook: Segment reporting
Latest edition: Our comprehensive guide to ASC 280 – with analysis, Q&As and examples.
Defining Issues
Our collection of newsletters with insights and news about financial reporting and regulatory developments, incl. the Quarterly Outlook and FRV Weekly.
Resource
SEC staff clarifies segment reporting disclosures
SEC staff remarks on multiple segment performance measures and elaborates on single reportable segment entities.
Meet our team
Subscribe to stay informed
Receive the latest financial reporting and accounting updates with our newsletters and more delivered to your inbox.
Accounting Research Online
Access our accounting research website for additional resources for your financial reporting needs.