Preface
We are pleased to present the 2025 edition of
Segment Reporting. This Roadmap provides Deloitte’s insights into and
interpretations of the accounting guidance in ASC 280,1 including key excerpts and examples to illustrate the relevant requirements.
Updates in the 2025 edition reflect our latest thinking as well as input from
standard setters and regulators.
Segment disclosures are an important
aspect of financial reporting because they help investors evaluate an entity’s
business activities and make informed decisions. ASU 2023-07 (issued in November
2023) amended ASC 280 to “improve reportable segment disclosure requirements,
primarily through enhanced disclosures about significant segment expenses.” The ASU
also enhanced interim disclosure requirements, clarified the circumstances in which
an entity can disclose multiple segment measures of profit or loss, provided new
segment disclosure requirements for entities with a single reportable segment, and
added certain other disclosure requirements. The ASU’s amendments were intended to
help investors “better understand an entity’s overall performance” and assess
“potential future cash flows.”
For discussions and examples of the disclosures
introduced by ASU 2023-07 related to significant segment expenses and other segment
items, see Chapter 6
and Appendix B of the
Roadmap. Appendix C addresses frequently asked
questions (FAQs) related to the ASU’s accounting and reporting requirements. For a
summary of the substantive changes made in the 2025 edition of the Roadmap, see
Appendix F.
Note that while this Roadmap is
intended to help readers navigate the accounting and financial reporting guidance on
segment reporting, it is not a substitute for the exercise of professional judgment,
which is often essential to applying the requirements of ASC 280. It is also not a
substitute for consulting with Deloitte professionals on complex accounting
questions and transactions.
Be sure to
check out On the Radar
(also available as a stand-alone
publication), which briefly summarizes
emerging issues and trends related to the accounting and
financial reporting topics addressed in the Roadmap.
We hope that you find this
publication a valuable resource when considering the accounting guidance on segment
reporting.
Footnotes
1
For the full titles of standards and other literature
referred to in this publication, see Appendix D. For a list of
abbreviations used in this publication, see Appendix E.