Wiley GAAP: Financial Statement Disclosure Manual

15ASC 280 SEGMENT REPORTING

1. Authoritative Literature
   1. Subtopic
   2. Scope
   3. Management Approach
   4. Operating Segments
   5. Reportable Segments
      1. Revenue Test
      2. Profit and Loss Test
      3. Assets Test
      4. Comparability
      5. 75% Test
      6. Aggregating Segments
   6. Practice Alert
2. Disclosure and Presentation Requirements
   1. Presentation
   2. Segment Disclosure Requirements
   3. Restatement of Previously Reported Segment Information
   4. Entity‐Wide Disclosure Requirements
      1. Products and Services
      2. Geographic Areas
      3. Major Customers
3. Example Presentations and Disclosures
   1. Example 15.1: Summary of Significant Accounting Policies—Segments
   2. Example 15.2: Business Segment and Geographic Information
   3. Example 15.3: Segments Based on Services
   4. Example 15.4: Single Business Segment—Prior Years Restated—Sales Disclosed by Marketing Category
   5. Example 15.5: Segment Information—Three Segments Based on Products

AUTHORITATIVE LITERATURE

With many companies organized as conglomerates, the presentation of basic consolidated financial statements on an aggregated basis does not provide users with sufficient information for decision‐making purposes. The primary benefit of segment reporting is the release of “hidden data” from consolidated financial information. Different segments may possess different levels of profitability, risk, and growth. Assessing future cash flows and their associated risks can be aided by segment data. For example, knowledge of the level of reporting entity operations in growing or declining product lines can help in the prediction ...