On November 27, the FASB issued ASU 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The amendments in ASU 2023-07 improve reportable segment disclosure requirements primarily through enhanced disclosure about significant segment expenses. The key amendments include requirements that public entities 1) disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. 2) disclose an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss. 3) provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB Accounting Standards Codification Topic 280, Segment Reporting, in interim periods. Public entities will be required to report segment information in accordance with the new guidance starting in annual periods beginning after December 15, 2023.
The ASU’s key amendments include requirements that public entities disclose significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss. Additionally, public entities need to disclose an amount for other segment items by reportable segment and a description of its composition. The other segment items category is the difference between segment revenue less the significant expenses disclosed and each reported measure of segment profit or loss. And finally, public entities need to provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by ASC Topic 280, Segment Reporting, in interim periods.
In other exciting news, on November 14 the FASB appointed new Board Member Hillary H. Salo, who currently serves as Technical Director of the FASB, and reappointed Susan M. Cosper. Additionally, the FAF named David Finkelstein, who previously served with Melisa on TIC, to the Private Company Council.
On November 16, the AICPA adopted revised Statements on Standards for Tax Services (SSTSs), effective January 1, 2024. The revised SSTSs introduce a new structure to organize the standards by type of work performed. They also include three new standards on data protection, reliance on tools, and representation of clients before tax authorities.
Stay tuned for more updates next month!
