Segment footnote disclosures (Insights from the investment community)

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02/28/2013 by PwC Investor Resource Institute
Segment footnote disclosures  (Insights from the investment community)

At a glance

US accounting standards require public companies to disclose, in their financial statement footnotes, segment data based on the “management approach,” under which investors are provided with a view of the business through the eyes of management. Read more in this edition of Insights from the investment community.

The segment footnote that accompanies the financial statements presents information about the different types of business activities of a company (e.g., the products and services a company provides), and the different geographies in which it operates. This information can help financial statement users to better understand a company’s performance, assess its prospects for future cash flows, and make more informed judgments about the company as a whole.