6.1 Overview
ASC 280 requires an entity to disclose quantitative and qualitative information
about each reportable segment (see Chapter 4) as well as to provide entity-wide disclosures about products
and services and geographical operations regardless of how the entity is organized
(see Chapter 5). Segments as
defined by ASC 280 also provide a basis for an SEC registrant’s required disclosures
in the business and MD&A sections of the registrant’s filing.
Key Takeaways
- Segments as defined by ASC 280 provide the basis for disclosures in the business and MD&A sections of a registrant’s filing.
- Registrants should carefully consider the reporting implications of retrospective changes in reportable segments.