Expanded Reportable Segment Disclosures

Updated September 2024

The Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, in November 2023. The ASU was issued to improve disclosures about a public entity’s reportable segments and provide additional information about a segment’s expenses.

ASU 2023-07 requires incremental line-item disclosures about each reportable segment’s expenses and expands the scope of interim disclosures to include all required annual disclosures about a reportable segment’s profit or loss and assets, including the newly required expense disclosures. The amendments in the ASU do not remove any of the existing requirements for disclosure of specific items (such as depreciation, amortization, or depletion expenses) nor do they change how a public entity identifies its operating segments, aggregates those operating segments, or applies the quantitative thresholds to determine its reportable segments.

This Financial Reporting Insights covers the requirements of ASU 2023-07, including considerations on how to apply them, their interaction with the existing requirements in Accounting Standards Codification (ASC) 280, and an example illustrating the reportable segments note disclosure after adoption of the ASU. Additionally, this publication briefly highlights the other requirements of ASC 280 that were not affected by ASU 2023-07.

Certain sections of this publication were updated in September 2024 to reflect clarified SEC staff views related primarily to the disclosure of multiple measures of segment profit or loss and considerations for single reportable segment entities.