5.3 Combination With Other Disclosure Requirements
An entity may combine entity-wide disclosures with those required by other
pronouncements if doing so would benefit financial statement users. For instance,
combining disclosure of risks and uncertainties required by ASC 275 related to
concentrations of customers, products or services, or geographic area with
entity-wide disclosures in ASC 280 could result in a seamless presentation of these
amounts and the related inherent risks, provided that the entity-wide disclosures
meet the requirements in ASC 280-10-50-39 through 50-42.
Further, ASC 606 requires entities to disclose revenue by disaggregating it into
categories “that depict how the nature, amount, timing, and uncertainty of revenue
and cash flows are affected by economic factors” (for more information, see
Chapter 15 of
Deloitte’s Roadmap Revenue
Recognition). While entity-wide disclosures are only required
in annual financial statements, ASC 270-10-50-1(i) requires entities to disclose the
following in their interim financial statements:
All of the
following information about reportable operating segments determined according
to the provisions of Topic 280, including provisions related to restatement of
segment information in previously issued financial statements:
-
Revenues from external customers
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Intersegment revenues
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A measure of segment profit or loss
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Total assets for which there has been a material change from the amount disclosed in the last annual report
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A description of differences from the last annual report in the basis of segmentation or in the measurement of segment profit or loss
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A reconciliation of the total of the reportable segments’ measures of profit or loss to the entity’s consolidated income before income taxes and discontinued operations. However, if, for example, an entity allocates items such as income taxes to segments, the 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.