FASB seeks public company input on segment reporting

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In brief , PwC US Aug 01, 2019

The FASB is seeking feedback from public companies to better understand the challenges in applying current and proposed segment disclosure requirements.

What happened?

On June 25, the FASB invited public companies to participate in a study that focuses on potential improvements to the current segment disclosure requirements of ASC 280. Participating companies will be asked to provide feedback on the following concepts:

  • Requiring additional disclosures by reportable segment, as well as general disclosures about the basis of segmentation and the composition of reportable segments
  • Improving the connectivity of the segment information to the financial statements by enhancing the requirements to reconcile segment disclosures to the financial statements.

This is the second outreach related to the segment project. In a 2018 study, the FASB focused on segment identification and the aggregation of operating segments into reportable segments. Based in part on the challenges identified by participants in that study, the Board decided not to revisit segment identification. They were also hesitant to propose a fundamental change to the accounting standard. Concern about the costs versus benefits of addressing the aggregation criteria and the need for more input inspired the current disclosure study.


Why is this important?

The study is designed to gather feedback from public companies in order to inform the Board’s consideration of improvements to segment disclosures and improve the quality and usefulness of information provided to investors.

What's next?

The Board is seeking stakeholder input as it deliberates potential changes to the segment disclosure requirements. Stakeholders are encouraged to participate in the study and share their perspectives on the current requirements and proposed changes. Individual feedback will be kept confidential. The study is expected to last for three or four months, with the results expected to be summarized by year end.

To have a deeper discussion on segment reporting, please contact:

Andreas Ohl

Partner, National Professional Services Group, PwC US


Matthew Sabatini

Partner, National Professional Service Group, PwC US


Hidar Akhras

Director, National Professional Services Group, PwC US


Contact us

David Schmid

International Accounting Leader, National Professional Services Group, PwC US

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