Handbook: Segment reporting
Handbooks | October 2025
Latest edition: Our comprehensive guide to ASC 280 – with analysis, Q&As and examples.
Using Q&As and examples, KPMG provides interpretive guidance on segment reporting post-adoption of ASU 2023-07 (Improvements to reportable segment disclosures). This October 2025 edition incorporates updated guidance and interpretations.
Applicability
- Required for public business entities.
- Discretionary but encouraged for nonpublic business entities and not-for-profit entities.
Relevant dates
| Effective date | Public entities |
|---|---|
Annual periods – Fiscal years beginning after | Dec 15, 2023 |
Interim periods – In fiscal years beginning after | Dec 15, 2024 |
Key impacts
Segment reporting has consistently been a hot topic for financial statement preparers, auditors, investors and the SEC ever since the FASB first issued guidance on the subject in 1997. That guidance, which is codified in ASC 280, is designed to provide financial statement users with granular information through the ‘eyes of management’ about a public entity’s business performance.
Despite the FASB’s efforts, the SEC staff has expressed concerns over several years about a lack of compliance. Specifically, the SEC’s concerns are that too few segments are being disclosed, and not all required information about reported segments is being presented.
Accounting Standards Update (ASU) 2023-07, which is already effective for certain entities, marks a response by the FASB to user requests to improve segment reporting, notably requiring disclosure of significant segment expenses and increasing the frequency of segment reporting to interim periods.
However, ASC 280 remains challenging to apply because an entity’s internal organizational structure dictates how segment information is compiled and presented. This Handbook discusses these challenges and explains the principles of ASC 280, as amended by ASU 2023-07, through extensive interpretive guidance, examples and observations.
Report contents
- Scope
- Identify the CODM
- Identify and aggregate operating segments
- Determine reportable segments
- Segment disclosure requirements
- Recasting of previously reported information
- Entity-wide information
- SEC filings: US companies
- SEC filings: non-US companies (FPIs)
- Interaction with other Topics and industry guidance
Download the document:
Segment reporting
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