Appendix A — Differences Between U.S. GAAP and IFRS Accounting Standards

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While the guidance in U.S. GAAP (before the adoption of ASU 2023-07) and IFRS® Accounting Standards on segment reporting is substantially converged, some differences remain. The table below summarizes those differences on the basis of a comparison of authoritative literature under U.S. GAAP and IFRS Accounting Standards; it does not necessarily include interpretations of such literature.

Changing Lanes

In November 2023, the FASB issued ASU 2023-07 to enhance segment disclosures, including but not limited to disclosures about significant segment expenses, for all public entities required to report segment information in accordance with ASC 280. The FASB decided to retain all existing segment disclosure requirements in ASC 280. The ASU’s amendments are incremental to those requirements and “do not change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments.”

The amendments in ASU 2023-07 are effective for all public entities for fiscal years beginning after December 15, 2023 (i.e., for calendar-year-end public entities, annual periods beginning on January 1, 2024), and interim periods within fiscal years beginning after December 15, 2024 (i.e., for calendar-year-end public entities, interim periods beginning on January 1, 2025). Early adoption is permitted. See Section 1.9 for further information about the ASU.

When an entity adopts ASU 2023-07, there will be differences between the guidance in U.S. GAAP and IFRS Accounting Standards because the International Accounting Standards Board® decided not to proceed with the amendments proposed in its 2017 exposure draft on improvements to IFRS 8 operating segments.

Subject	U.S. GAAP	IFRS Accounting Standards
	ASC 280	IFRS 8
Entity-wide disclosures of long-lived assets by geography	Long-lived assets within the entity-wide disclosures do not include intangible assets. See further discussion in Section 5.5.3.	Under IFRS Accounting Standards, noncurrent assets are defined as assets that do not meet the definition of a current asset. Therefore, they would include intangible assets.
Segment liabilities	Disclosure of segment liabilities is permitted but not required. See further discussion in Section 4.5.	Disclosure of segment liabilities is required if such information is regularly provided to the CODM.
Entities with a matrix form of organization	An entity with a matrix form of organization is required to determine operating segments on the basis of products and services rather than on the basis of geographical components or other information. See further discussion in Section 2.5.	An entity is required to identify operating segments on the basis of the “core principle” regardless of the form of organization used. Under IFRS 8, the core principle is that operating segments must be identified in a manner that enables financial statements users “to evaluate the nature and financial effects of the business activities in which [the entity] engages and the economic environments in which it operates.” Management will therefore be required to exercise judgment in determining which of the bases of segmentation satisfies this objective.

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This publication provides comprehensive guidance; however, it does not address all possible fact patterns, and the guidance is subject to change. Consult a Deloitte & Touche LLP professional regarding your specific issues and questions.