Wiley GAAP 2019

15ASC 280 SEGMENT REPORTING

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 entities, subsidiaries, joint ventures, or investees accounted for by the equity method if those entities’ separate company statements also are consolidated or combined in a complete set of financial statements and both the separate company statements and the consolidated or combined statements are included in the same financial report.” However, ASC 280 does apply to those entities if they are public entities, whose financial statements are issued separately. (ASC 280-10-15-2 and 3)

Overview

Objective.

With many companies organized as conglomerates, the presentation of basic consolidated financial statements on an aggregated basis ...