Deloitte
Accounting Research Tool
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Chapter 2 — Identification of Operating Segments

2.6 Vertically Integrated Operations

2.6 Vertically Integrated Operations

ASC 280-10
50-2 An operating segment shall include components of a public entity that sell primarily or exclusively to other operating segments of the public entity if the public entity is managed that way. Information about the components engaged in each stage of production is particularly important for understanding vertically integrated public entities in certain businesses, for example, oil and gas entities. This information is also important because different activities within the entity may have significantly different prospects for future cash flows.