FASB recently issued a final Accounting Standards Update (ASU) focusing on enhancing the disclosure requirements for reportable segments of public entities. The update aims to provide investors with more detailed financial analyses by requiring public companies to offer increased information about significant segment expenses and more timely and comprehensive segment reporting throughout the fiscal period.

FASB Chair Richard R. Jones highlighted that the new ASU expands segment disclosures from the 1997 requirements while maintaining the management approach to this information. The final ASU, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, demands public entities to disclose notable segment expenses regularly shared with the chief operating decision maker, along with a description of other segment items and their composition.

All annual disclosures on a reportable segment's profit or loss and assets, currently mandatory under FASB Accounting Standards Codification Topic 280, will now be required in interim periods as well. The new guidance will be effective for reporting periods starting after December 15, 2023, impacting all public entities.

https://www.journalofaccountancy.com/news/2023/nov/fasb-issues-new-segment-reporting-guidance.html