Preface

We are pleased to present the 2024 edition of Segment Reporting. This Roadmap provides Deloitte’s insights into and interpretations of the accounting guidance in ASC 280, including key excerpts and examples to illustrate the relevant guidance. The 2024 edition reflects the guidance in ASU 2023-07 (issued November 2023). It includes a new Chapter 6 and Appendix B, which provide discussions and examples of the disclosures introduced by the ASU related to significant segment expenses and other segment items. Appendix E provides a summary of the substantive changes made in the 2024 edition.

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 amends ASC 280 to “improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.” The ASU also enhances interim disclosure requirements, clarifies the circumstances in which an entity can disclose multiple segment measures of profit or loss, provides new segment disclosure requirements for entities with a single reportable segment, and contains other disclosure requirements. The amendments are intended to help investors “better understand an entity’s overall performance” and assess “potential future cash flows.”

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.

We hope that you find this publication a valuable resource when considering the accounting guidance on segment reporting.