4.1 Overview

ASC 280 requires both quantitative and qualitative disclosures for each reportable segment. Generally, these disclosures are provided for each period presented. The disclosure requirements in ASC 280 for each reportable segment can be categorized as follows:

General information (see Section 4.2).
Information about profit or loss and assets (see Section 4.3).
Reconciliations (see Section 4.5).

In accordance with the management approach, the disclosures for each reportable segment should be consistent with the information provided to the CODM (see further discussion in Section 4.4).

In addition to disclosures for each reportable segment, an entity must provide certain entity-wide information (see further discussion in Chapter 5).

Key Takeaways

Disclosure of the factors used to identify reportable segments and the basis of organization of the entity give financial statement users important context regarding the management approach to segment disclosures. Such disclosures are particularly important when an entity is organized as a single operating segment.
The measure of profit or loss disclosed for each reportable segment should be the measure used by the CODM to assess performance and allocate resources. This measure may vary by reportable segment.
When there has been a change in reportable segments, corresponding information for earlier periods, including interim periods, must be restated unless restatement is impracticable.
Although an entity is not required to restate its financial information to reflect a change in measurement of segment profit and loss, presentation of all segment information on a comparable basis is preferable if it is practicable.

Changing Lanes

As previously discussed, the FASB issued ASU 2023-07 in November 2023 to improve the information that a public entity discloses about its reportable segments and to address investor requests for more information about reportable segment expenses.

This chapter discusses the disclosure requirements for reportable segments in ASC 280 and highlights how the adoption of ASU 2023-07 will affect them. For additional information about the new disclosure requirements introduced by the ASU related to significant segment expenses and other segment items, see Chapter 6.

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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.