Wiley GAAP 2020

15ASC 280 SEGMENT REPORTING

• Perspective and Issues
  • Subtopic
  • Scope and Scope Exceptions
  • Overview
    • Objective
    • Benefits
    • Management Approach
• Definitions of Terms
• Concepts, Rules, and Examples
  • Operating Segments
  • Reportable Segments
    • Revenue Test
    • Profit and Loss Test
    • Assets Test
    • Comparability
    • 75% Test
    • Example of Segment Testing
    • Aggregating Segments
    • Reassessment of Segments
  • Measurement Issues
    • Transfer Pricing
    • Common Costs
    • General Corporate Expense
  • Segment and Entity-Wide Disclosures
  • Restatement of Previously Reported Segment Information
    • Example—Comprehensive Illustration of the Application of Segment Reporting
  • Other Sources

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 ...