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:
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.
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.
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.
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