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FASB Issues Final Standard on Improvements to Reportable Segment Disclosures (November 30, 2023; Updated December 20, 2023)

Heads Up | Volume 30, Issue 22
November 30, 2023 (Updated December 20, 2023)
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FASB Issues Final Standard on Improvements to Reportable Segment Disclosures

This Heads Up has been updated to reflect discussion from the 2023 AICPA & CIMA Conference on Current SEC and PCAOB Developments (the “AICPA Conference”).1 Specifically, the SEC indicated that when a single reportable segment entity is managed on a consolidated basis, the entity would be expected to conclude that consolidated net income is the measure of segment profit or loss that is most consistent with U.S. GAAP. Further, the SEC encouraged registrants that choose to early adopt ASU 2023-07, and that include an additional measure or measures of segment profit or loss that are not determined in accordance with GAAP, to reach out to the SEC to discuss their plans.


For more information about the AICPA Conference, see Deloitte’s December 10, 2023, Heads Up.
FASB Accounting Standards Update (ASU) No. 2023-07, Improvements to Reportable Segment Disclosures.
The ASC master glossary defines the term “public entity,” which includes broker-dealers and entities that only have debt securities trading in a public market.
For titles of FASB Accounting Standards Codification (ASC) references, see Deloitte’s “Titles of Topics and Subtopics in the FASB Accounting Standards Codification.”
Reproduced from the FASB and IASB Staff Paper, Agenda Reference AP34, “Segment Reporting: Improvements to Reportable Segment Disclosures.”
See Question 104.01 of the SEC’s Compliance and Disclosure Interpretations (C&DIs) on non-GAAP financial measures.
See the SEC Reporting Considerations section above for clarifications the SEC staff made at the AICPA Conference regarding entities with a single reportable segment.