Appendix F — Roadmap Updates for 2024
The tables below summarize the
substantive changes made in the 2024 edition of this Roadmap. Updates made in
December 2024 are indicated with an asterisk (*).
New Content
Section
|
Title
|
Description
|
---|---|---|
Revenue
|
Added a new section to address the
interaction of ASC 280 and ASC 606 with respect to
revenue disclosure requirements.
| |
Improvements to Reportable Segment
Disclosures Under ASU 2023-07
|
Added a new section to discuss the
guidance in ASU 2023-07, including effective dates and
transition, and SEC considerations. Added a table
summarizing the ASU’s main provisions related to
reportable segment disclosures.
| |
Economic Performance Measures Differ in a Single Year
|
Added a new section to include the example discussed in
ASC 280-10-55-35 and 55-36.
| |
Changes Introduced by ASU 2023-07
|
Added a new section to include the relevant Codification
paragraphs added by ASU 2023-07.
| |
Single Reportable Segment With One Performance
Measure
|
Added a new section on the guidance in
ASU 2023-07 that applies to entities that have a single
reportable segment.
Added new Example 4-1 to
discuss the disclosure for a pre-revenue company with
one operating and reportable segment. Renumbered
subsequent examples.
| |
Single Reportable Segment With Multiple Performance
Measures
|
Added a new section to discuss the guidance in ASU
2023-07 that applies to entities that have a single
reportable segment and disclose multiple measures of
performance.
| |
Materiality Considerations in Segment Disclosure
|
Added a new section to discuss the evaluation of
materiality with respect to segment information and the
application of SAB Topic 1.M (SAB 99).
| |
Recasting of Entity-Wide Disclosures
|
Added a new section on the recasting of prior-period
entity-wide disclosures.
| |
Significant Expenses and Other Segment Items
|
Added a new chapter to discuss the disclosures introduced
by ASU 2023-07 related to significant expenses and other
segment items. Chapter 6 in the 2022 edition (“SEC
Reporting Considerations”) has been updated and moved to
Chapter 7.
| |
Comprehensive Example Disclosures for Entity With
Multiple Reportable Segments (Before and After Adoption
of ASU 2023-07)
|
Added a new appendix to include a
comprehensive example of segment reporting disclosures
before and after the adoption of ASU 2023-07. Appendix B
in the 2022 edition (“Identification of Reporting
Units”) has been removed; see Section 2.6 of
Deloitte’s Roadmap Goodwill and Intangible
Assets for information on this
topic.
Subsequently (1) updated the entity
characteristics listed in Section B.1 and (2) updated the
illustrative disclosures in Section B.3 to align them more closely
with Example 3, Case B, in ASC 280-10-55-48, as amended
by ASU 2023-07.*
| |
FAQs Related to the Accounting and Reporting Requirements
of ASU 2023-07
|
Added a new appendix containing answers to FAQs,
including views expressed by the SEC staff in informal
discussions, related to implementing the new disclosures
required by ASU 2023-07; relettered subsequent
appendixes accordingly.*
|
Amended or Deleted Content
Section
|
Title
|
Description
|
---|---|---|
Objectives of Segment Reporting
|
Added a Changing Lanes discussing
the issuance of ASU 2023-07.
| |
Application of the Guidance
|
Added graphic to illustrate the steps to follow in
applying the guidance in ASC 280.
| |
Interaction With Other GAAP
|
Renamed section to address the interaction of ASC 280
with other GAAP, including goodwill and revenue.
| |
Goodwill
|
Renamed and updated section to address the interaction of
ASC 280 with ASC 350. Section 1.5.1 in the 2022 edition
(“Considerations for Entities That Are Not Within the
Scope of ASC 280”) has been moved to Section
1.6.5.
| |
Financial Statements of Entities With Publicly Traded
Debt Only or Conduit Bond Obligors
|
Renamed section to add “or Conduit Bond Obligors” to
clarify that the segment guidance applies to such
entities.
| |
Separate Financial Statements Included in an SEC
Filing
|
Added Example 1-4 to illustrate the
segment reporting guidance applicable to separate
financial statements included in an SEC filing.
| |
Corporate Headquarters and Functional Departments
|
Added discussion of corporate functional departments that
may qualify as operating segments.
| |
Identification of the CODM
|
Updated to include a Changing Lanes
discussing the guidance in ASU 2023-07 on the
identification of the CODM.
| |
Management Committees
|
Added Example 2-4 to illustrate an
instance in which the CODM is a management committee.
Renumbered subsequent examples.
| |
Budgeting Process
|
Added Example 2-7 to illustrate how
the budgeting process can be indicative of a CODM’s
assessment of segment performance. Renumbered subsequent
examples.
| |
Discrete Financial Information
|
Added Example 2-8 to illustrate the
concept of discrete financial information in the context
of identifying operating segments. Renumbered subsequent
examples.
| |
Multiple Sets of Data or Components
|
Added Example 2-9 to illustrate how
to assess multiple sets of data when identifying
operating segments. Renumbered subsequent examples.
| |
Reconsideration of Identified Operating Segments
|
Added Example 2-13 to illustrate the
reconsideration of identified operating segments after
an acquisition.
| |
Evaluation of “Similar”
|
Updated discussion to include SEC considerations
regarding the aggregation of operating segments into
reportable segments.
| |
Aggregation Into a Single Reportable Segment
|
Added a Changing Lanes discussion of
the relevant guidance in ASU 2023-07 as well as an
SEC Considerations discussion
related to recent SEC speeches.
Added a cross-reference to FAQ
13 in Appendix
C, which provides further discussion of
considerations related to the segment measure of profit
or loss for a single reportable segment.*
| |
Time Horizon for Analysis
|
Added discussion regarding the timing of the analysis of
aggregation criteria when an entity acquires a new
operating segment.
| |
Different Measures of Profit or Loss
|
Updated to include a Changing Lanes
discussion of the issuance of ASU 2023-07 and the use of
multiple measures of a segment’s profit or loss.
| |
Presentation of Nonreportable Operating Segments
|
Added discussion, including new Example
3-10, on the “all other” category for
activities that do not represent a reportable segment
requiring disclosure.
| |
Reconsideration of Quantitative Thresholds
|
Added a Changing Lanes discussion
regarding the FASB’s decision to replace the term
restatement with recast in ASU
2023-07.
| |
Overview
|
Added a Changing Lanes
discussion of the issuance of ASU 2023-07.
| |
General Information
|
Added a Key Takeaway discussion to
highlight the applicable disclosure requirement when
operating segments are aggregated into reportable
segments. Added a Changing Lanes
discussion of the new disclosure requirements in ASU
2023-07 related to the CODM.
| |
Single Reportable Segment With Multiple Performance
Measures
|
Added a cross-reference to FAQ
13 in Appendix
C, which provides further discussion of
considerations related to the segment measure of profit
or loss for a single reportable segment.*
| |
Information About Profit or Loss and Assets for Each
Reportable Segment
|
Updated discussion to include the requirements for
entity-wide disclosures, specifically related to segment
revenues.
| |
Interest Revenue and Interest Expense
|
Added a Changing Lanes discussion of
the relevant guidance in ASU 2023-07.
| |
Allocation of Items to Reportable Segments
|
Added a Changing Lanes discussion of
the relevant guidance in ASU 2023-07.
| |
Multiple Measures Used by the CODM
|
Added a Changing Lanes discussion and Example
4-5 to clarify the guidance in ASU
2023-07 on the use of multiple measures of segment
profit or loss. Renumbered subsequent examples
accordingly.
Subsequently expanded the new Changing Lanes discussion
to include a cross-reference to FAQs 7 through 10 in
Appendix C,
which provide more information about the presentation of
additional performance measures.*
| |
Explanation of Segment Profit or Loss and Segment
Assets
|
Added a Changing Lanes discussion of
the relevant guidance in ASU 2023-07. Added
Example 4-6 to illustrate a
disclosure related to the CODM’s use of multiple profit
measures.
| |
Proportionate Consolidation Used to Measure Performance
of an Equity Investee
|
Updated to include discussion regarding disclosure
requirements for financial information about equity
method investments.
| |
Reconciliations
|
Added a Changing Lanes discussion of
the guidance in ASU 2023-07 on reconciliations. Added
Example 4-7 to illustrate the
reconciliation of segment EBITDA to profit before income
tax.
| |
Comprehensive Example — Before Adoption of ASU
2023-07
|
Updated section and added a Changing
Lanes discussion to refence an example
disclosure in Appendix B after adoption of ASU
2023-07.
| |
Interim Period Information
|
Updated to include discussion of current requirements
regarding interim financial statements. Added a
Changing Lanes discussion
related to the relevant guidance in ASU 2023-07.
| |
Restatement of Segment Data Because of Changes in
Reportable Segments or Segment Expenses
|
Updated section and added a Changing
Lanes discussion of the relevant guidance
in ASU 2023-07.
| |
Disclosure When Restatement of Earlier Periods Is
Impracticable
|
Added a Changing Lanes discussion of
the guidance in ASU 2023-07 on the recasting of
prior-period segment expense information.
| |
Change in Measure of Segment Profit or Loss
|
Added a Changing Lanes discussion of
the relevant guidance in ASU 2023-07.
| |
Combination With Other Disclosure Requirements
|
Updated to reflect the revenue disaggregation disclosure
requirements applicable to interim financial
statements.
| |
Information About Products and Services
|
Added Example 5-1 to illustrate the
disclosure of revenue by products and services.
| |
Information About Geographic Areas
|
Added graphic to illustrate the information that an
entity is required to provide about geographic areas
under ASC 280-10-50-41.
| |
Information About Major Customers
|
Updated to add Example 5-2 to
illustrate the disclosure of information about major
customers.
| |
Significant Segment Expenses
|
Updated Connecting the Dots to reflect the
issuance of ASU 2024-03; also inserted cross-references
to (1) Sections 6.2.1 through 6.2.4 and (2)
FAQs 19, 22, and 24 through
30 in Appendix C.*
| |
MD&A of Financial Condition and Results of Operations
(SEC Regulation S-K, Item 303)
|
Added a Changing Lanes discussion of
the relevant guidance in ASU 2023-07.
| |
Consideration of SEC Guidance on Non-GAAP Measures
|
Added a Changing Lanes discussion of
the relevant guidance in ASU 2023-07.
| |
Reporting Implications of Retrospective Changes
|
Renamed section and added a Changing
Lanes discussion of the relevant guidance
in ASU 2023-07.
| |
Nonpublic Offerings by SEC Registrants
|
Added a Changing Lanes discussion of
the relevant guidance in ASU 2023-07.
| |
Differences Between U.S. GAAP and IFRS Accounting
Standards
|
Added a Changing Lanes discussing
the issuance of ASU 2023-07. Added cross references to
Sections 4.5 and
2.5.
| |
Appendix B
|
Identification of Reporting Units
|
Deleted and replaced with new Appendix B, “Comprehensive Example
Disclosures for Entity With Multiple Reportable Segments
(Before and After Adoption of ASU 2023-07).”
|