Our white paper, Expanded Reportable Segment Disclosures, explains the requirements of Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which was issued by the Financial Accounting Standards Board in November 2023 to improve disclosures about a public entity’s reportable segments and provide additional information about a reportable segment’s expenses. The primary change in ASU 2023-07 is the introduction of the significant expense principle, which requires disclosure of segment expense categories and amounts that meet all of the following criteria:

  • Regularly provided to the chief operating decision maker
  • Included within the segment’s report measure of profit or loss, and
  • Determined to be significant by management

Other than the significant expense principle, ASU 2023-07 includes the following incremental changes to the existing guidance in Topic 280:

  • Introduces the other segment items disclosure
  • Permits disclosure of multiple measures of a segment’s profit or loss
  • Clarifies the scope of Topic 280 for single reportable segment entities
  • Expands interim disclosures

Our white paper further discusses the requirements of ASU 2023-07, including considerations on how to apply them, their interaction with the existing requirements in Topic 280, and an example illustrating the reportable segments note disclosure after adoption of the ASU. Additionally, the white paper briefly highlights the other requirements of Topic 280 that were not affected by ASU 2023-07.

Source: RSM US LLP.
Reprinted with permission from RSM US LLP.
© 2024 RSM US LLP. All rights reserved. https://rsmus.com/insights/financial-reporting/new-white-paper-on-segment-reporting.html

RSM US LLP is a limited liability partnership and the U.S. member firm of RSM International, a global network of independent assurance, tax and consulting firms. The member firms of RSM International collaborate to provide services to global clients, but are separate and distinct legal entities that cannot obligate each other. Each member firm is responsible only for its own acts and omissions, and not those of any other party. Visit rsmus.com/about for more information regarding RSM US LLP and RSM International.

At Keegan Linscott & Associates, our people are our greatest asset. We embody a commitment to our people in our culture of openness, cooperation, teamwork and community service. Keegan Linscott provides exceptional training, coaching, a positive work/life balance and opportunities for personal and professional development. Keegan Linscott’s dedicated team of multi-faceted professionals stand ready to provide the highest quality of audit, tax and consulting services to our valued clients and community. We are leaders in our practice areas and are uniquely qualified to provide innovative and practical solutions.

As a group of practitioners working together, the professionals at Keegan Linscott are able to specialize in specific areas of accounting, audit, taxation, and consulting – a key advantage which allows us to offer a higher standard of service quality.

For more information on how Keegan Linscott & Associates, PC can assist you, please call (520) 884-0176.