Wiley GAAP 2018, 16th Edition

16ASC 280 Segment Reporting

1. Perspective and Issues
   1. Subtopic
   2. Scope and Scope Exceptions
   3. Overview
      1. Objective
      2. Benefits
      3. Management Approach
2. Definitions of Terms
3. Concepts, Rules, and Examples
   1. Operating Segments
   2. Reportable Segments
      1. Revenue Test
      2. Profit and Loss Test
      3. Assets Test
      4. Comparability
      5. 75% Test
         1. Example of Segment Testing
      6. Aggregating Segments
   3. Measurement Issues
      1. Transfer Pricing
      2. Common Costs
      3. General Corporate Expense
      4. Corporate Assets
   4. Segment Disclosures
   5. Entity-Wide Disclosures
   6. Restatement of Previously Reported Segment Information
      1. Example—Comprehensive Illustration of the Application of Segment Reporting
      1. Products and Services
      2. Geographic Information

Perspective and Issues

Subtopic

ASC 280, Segment Reporting, has one subtopic:

• ASC 280-10, Overall, that provides guidance to public business entities on how to report certain information about:
  • Operating segments in complete sets of financial statements, and in
  • Condensed financial statements of interim periods issued to shareholders.

ASC 280 also requires public entities to disclose certain information about:

• Their products and services,
• The geographic areas in which they operate, and
• Their major customers.

Scope and Scope Exceptions

ASC 280 applies to public entities. The statement does not mandate application to not-for-profit organizations or to nonpublic entities—which are, nevertheless, encouraged to voluntarily provide the segment disclosures prescribed by ASC 280. It also does not apply to “parent ...