4.8 Interim Period Information
ASC 280-10
50-32 A public entity shall disclose all of the following about each reportable segment in condensed financial
statements of interim periods:
- Revenues from external customers
- Intersegment revenues
- A measure of segment profit or loss
- Total assets for which there has been a material change from the amount disclosed in the last annual report
- A description of differences from the last annual report in the basis of segmentation or in the basis of measurement of segment profit or loss
- A reconciliation of the total of the reportable segments’ measures of profit or loss to the public entity’s consolidated income before income taxes and discontinued operations. However, if a public entity allocates items such as income taxes to segments, the public entity may choose to reconcile the total of the segments’ measures of profit or loss to consolidated income after those items. Significant reconciling items shall be separately identified and described in that reconciliation.
Pending Content (Transition Guidance:
ASC 280-10-65-1)
50-32 A public entity shall
disclose all of the following about each
reportable segment in condensed financial
statements of interim periods:
a. Subparagraph superseded by Accounting
Standards Update No. 2023-07.
b. Subparagraph superseded by Accounting
Standards Update No. 2023-07.
c. Subparagraph superseded by Accounting
Standards Update No. 2023-07.
d. Subparagraph superseded by Accounting
Standards Update No. 2023-07.
e. A description of differences from the last
annual report in the basis of segmentation or in
the basis of measurement of segment profit or
loss
ee. The segment information required by
paragraphs 280-10-50-22 through 50-26C and
280-10-50-28A through 50-28B
f. A reconciliation of the total of the
reportable segments’ amount for each measure of
profit or loss, including the total of the
reportable segments’ amount for any additional
measure of profit or loss disclosed in accordance
with paragraph 280-10-50-28A, to the public
entity’s consolidated income before income taxes
and discontinued operations. However, if a public
entity allocates items such as income taxes to
segments, the public entity may choose to
reconcile the total of the segments’ measures of
profit or loss to consolidated income after those
items. Significant reconciling items shall be
separately identified and described in that
reconciliation.
50-33 Interim disclosures are
required for the current quarter and year-to-date amounts.
Paragraph 270-10-50-1 states that when summarized financial
data are regularly reported on a quarterly basis, the
information in the previous paragraph with respect to the
current quarter and the current year-to-date or the last 12
months to date should be furnished together with comparable
data for the preceding year.
Pending Content (Transition Guidance: ASC
280-10-65-1)
50-33 Interim disclosures are required
for the current quarter and year-to-date amounts.
The information in paragraph 280-10-50-32 with
respect to the current quarter and the current
year-to-date or the last 12 months to date should
be furnished together with comparable data for the
preceding year.
When issuing interim financial statements, entities are permitted to
provide reduced disclosures in condensed financial statements. Entity-wide
disclosures are not required for interim periods; however, if a public entity had
material changes to such disclosures, including entity-wide disclosures, management
should consider providing the disclosures required by ASC 280-10-50-40 through
50-42. If changes are made to any entity’s reportable segments or an immaterial
segment becomes material, management should consider recasting requirements as
described in Section
4.9.
Changing Lanes
Under ASU 2023-07, entities must apply current annual
disclosure requirements in ASC 280 on an interim basis, except for
entity-wide disclosures, in addition to new requirements added by the ASU.
This means that public entities must disclose significant segment expenses
and other segment items, as well as all existing segment information about
profit or loss, on an annual and interim basis. Such disclosures include
information that must be provided annually in accordance with ASC
280-10-50-22 through 50-26C (e.g., a measure of a segment’s profit or loss
and total assets, interest revenue and interest expense, depreciation and
amortization expense). On an interim basis, public entities must also
disclose a reconciliation of each segment measure of profit or loss to
consolidated income. However, disclosures of the reconciliations of other
segment amounts (e.g., the total reportable segment revenues and assets to
the consolidated revenues and consolidated assets, respectively) are
permitted but not required in interim periods. Such interim disclosures also
do not have to include an explanation of how the CODM uses the measures of
segment profit or loss for each reportable segment. In paragraph BC77 of the
ASU, the FASB indicates that it expects this new interim disclosure
requirement to “result in more timely decision-useful information for users
without placing significant additional burden on preparers because the
interim segment information is generally expected to be available from an
entity’s existing financial systems and records.”
ASC 280-10-50-20 states, in part, that disclosures are required for “each
period for which an income statement is presented” (e.g., March 31, 20X1,
and March 31, 20X0). We believe that it is acceptable for an entity to use
one of the following alternatives when disclosing segment asset information
provided to and reviewed by the CODM in interim reporting periods (for
illustrative purposes, we have assumed that the interim statements of
financial position are presented as of March 31, 20X1, and December 31,
20X0, and the interim statements of operations are presented for the three
months ended March 31, 20X1, and March 31, 20X0):
-
Provide the segment asset disclosure for each period presented in the statement of financial position (e.g., March 31, 20X1, and December 31, 20X0).
-
Provide the segment asset disclosure for each period presented in the statement of operations (e.g., March 31, 20X1, and March 31, 20X0).
-
Provide the segment asset disclosure for each period presented in the statement of financial position as well as each period presented in the statement of operations (e.g., March 31, 20X1; December 31,20X0; and March 31, 20X0).
The chart below illustrates the segment reporting disclosures that a public
entity must provide on an interim basis upon its adoption of ASU
2023-07.