# ASC 280-10: Segment Reporting — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/280/10/) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:22:33.842Z to 2026-09-09T23:23:07.457Z Record version: sha256:054e9442fa34e86f5b22bcc741042071c0b5a4e71e7b1cca604167e51b65a954 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10: Segment Reporting — Overall ### Machine-generated study aids ```json { "summary": "ASC 280-10 requires public entities to disclose information about their operating segments using the \"management approach\" — segments are the components whose discrete financial results the chief operating decision maker (CODM) regularly reviews to allocate resources and assess performance (280-10-50-1). Operating segments that meet the 10 percent revenue, profit/loss, or asset thresholds (or are needed to reach the 75 percent of consolidated revenue floor) are reportable, and the entity must disclose segment profit or loss, assets, significant segment expenses, and reconciliations to consolidated amounts. All public entities, including single-reportable-segment entities, must also give entity-wide disclosures about products and services, geographic areas, and major customers.", "key_points": [ "An operating segment is a component that engages in revenue-producing business activities, whose operating results are regularly reviewed by the chief operating decision maker to allocate resources and assess performance, and for which discrete financial information is available (280-10-50-1); corporate headquarters and pension/OPEB plans are not operating segments (280-10-50-4).", "Two or more operating segments may be aggregated only if aggregation is consistent with the objective of the Subtopic, the segments have similar economic characteristics, and they are similar in all five criteria — nature of products/services, production processes, class of customer, distribution methods, and regulatory environment (280-10-50-11); below-threshold segments may be combined if they share only a majority of those criteria (280-10-50-13).", "A segment is reportable if its revenue (including intersegment) is 10 percent or more of combined segment revenue, its absolute profit or loss is 10 percent or more of the greater of combined segment profit or combined segment loss, or its assets are 10 percent or more of combined segment assets (280-10-50-12); additional segments must be added until reportable segments cover at least 75 percent of consolidated external revenue (280-10-50-14).", "A public entity must report a measure of profit or loss and total assets for each reportable segment, plus items such as external and intersegment revenues, interest revenue and expense, depreciation/amortization, equity method income, and income tax expense, if included in or otherwise regularly provided to the CODM (280-10-50-22, 280-10-50-25); it must also disclose significant segment expense categories and amounts and an 'other segment items' amount (280-10-50-26A through 50-26C).", "Reported amounts are the measures used by the CODM under the management approach (280-10-50-27); if the CODM uses more than one profit measure, at least one reported measure must be the one most consistent with the consolidated financial statement measurement principles (280-10-50-28A).", "Reconciliations of total reportable segment revenues, each measure of profit or loss, assets, and other significant items to consolidated amounts are required with significant reconciling items separately described (280-10-50-30 through 50-31), and prior periods must be recast for changes in segment composition or in identified significant segment expenses unless impracticable (280-10-50-34 through 50-35).", "Entity-wide disclosures — revenues by product/service, revenues and long-lived assets by country of domicile versus foreign countries, and the fact and amount of revenues from any single external customer providing 10 percent or more of revenues — are required annually of all public entities, including those with a single reportable segment (280-10-50-39 through 50-42)." ], "categories": [ "Disclosure", "Presentation", "Financial statement presentation", "SEC guidance" ], "audience_level": "intermediate", "student_note": "Segment reporting is a pure disclosure standard driven by internal reporting, so the analysis always starts with what the CODM actually sees — not with legal entity structure or product lines described in the MD&A. Common mistakes: aggregating segments that share only a majority of the five criteria (a majority suffices only for below-threshold segments under 280-10-50-13), and assuming single-segment entities are exempt (they are not).", "related_topics": [ "270-10", "205-20", "323", "220-20", "350-20" ], "key_concepts": [ "operating segment", "chief operating decision maker", "management approach", "aggregation criteria", "quantitative thresholds", "significant segment expenses", "entity-wide disclosures", "major customers" ] } ``` Source downloaded (UTC): 2026-09-09T23:22:33.842Z to 2026-09-09T23:22:33.842Z Record version: sha256:55097038e8d12c302d4c4985a5aead28a0fe2d965c5784a5d797518954e923a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/280/10/#00-status) SEC content: no ##### [280-10-00-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:33.842Z to 2026-09-09T23:22:33.842Z Record version: sha256:a51bec5e9b8a6afcba5a5e2999d671867f78af873bcccef129afea2b0ef1485f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Condensed StatementsAddedAccounting Standards Update No. 2025-1112/08/2025
Conduit Debt SecurityAddedMaintenance Update 2014-20 (PDF)09/29/2014
Public EntityAmendedMaintenance Update 2014-20 (PDF)09/29/2014
Public EntityAmendedAccounting Standards Update No. 2010-0701/28/2010
280-10-50-1AmendedAccounting Standards Update No. 2014-0905/28/2014
280-10-50-3AmendedAccounting Standards Update No. 2014-0905/28/2014
280-10-50-4AmendedAccounting Standards Update No. 2014-0905/28/2014
280-10-50-17AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-50-20 through 50-22
AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-50-22AmendedAccounting Standards Update No. 2015-0101/09/2015
280-10-50-24AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-50-26A through 50-26C
AddedAccounting Standards Update No. 2023-0711/27/2023
280-10-50-28 through 50-30
AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-50-28A through 50-28C
AddedAccounting Standards Update No. 2023-0711/27/2023
280-10-50-29AmendedAccounting Standards Update No. 2015-0101/09/2015
280-10-50-30AmendedAccounting Standards Update No. 2015-0101/09/2015
280-10-50-32 through 50-36
AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-50-32AmendedAccounting Standards Update No. 2025-1112/08/2025
280-10-50-32AmendedAccounting Standards Update No. 2015-0101/09/2015
280-10-55-3 through 55-5
AmendedAccounting Standards Update No. 2014-0905/28/2014
280-10-55-7AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-55-7AmendedAccounting Standards Update No. 2014-0804/10/2014
280-10-55-8AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-55-9SupersededAccounting Standards Update No. 2023-0711/27/2023
280-10-55-10SupersededAccounting Standards Update No. 2023-0711/27/2023
280-10-55-15A through 55-15G
AddedAccounting Standards Update No. 2023-0711/27/2023
280-10-55-17 through 55-19
AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-55-17AAddedAccounting Standards Update No. 2023-0711/27/2023
280-10-55-40AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-55-46 through 55-49
AmendedAccounting Standards Update No. 2023-0711/27/2023
280-10-55-49AmendedAccounting Standards Update No. 2015-0101/09/2015
280-10-55-53 through 55-55
AddedAccounting Standards Update No. 2023-0711/27/2023
280-10-65-1AddedAccounting Standards Update No. 2023-0711/27/2023
Source downloaded (UTC): 2026-09-09T23:22:37.059Z to 2026-09-09T23:22:37.059Z Record version: sha256:84dfb0264ad72473787be7362787118c9fc6a814878741fff233206d1e7452ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/280/10/#05-overview-and-background) SEC content: no ##### [280-10-05-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:37.059Z to 2026-09-09T23:22:37.059Z Record version: sha256:e311bb86ad3ddafb01a582e4c47f4003034cfdf000a234522f69ae8be34d4a2a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Segment Reporting Topic contains only the Overall Subtopic. ##### [280-10-05-2](https://asc.understandingaccounting.org/asc/280/10/#280-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:37.059Z to 2026-09-09T23:22:37.059Z Record version: sha256:be81dab1d80e8f28488dfccd99d011e50cf7777ef89ea84e7eb3adca55769b76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance to public entities on how to report certain information about operating segments in complete sets of financial statements of the [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") and in condensed financial statements of interim periods issued to shareholders. It also requires that public entities report certain information about their products and services, the geographic areas in which they operate, and their major customers. ##### [280-10-05-3](https://asc.understandingaccounting.org/asc/280/10/#280-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:37.059Z to 2026-09-09T23:22:37.059Z Record version: sha256:ebadced1c184f6871ada1b6bd9afae50848220e213cbe76a18defbeae25f92a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity could provide complete sets of financial statements that are disaggregated in several different ways, for example, by products and services, by geography, by legal entity, or by type of customer. However, it is not feasible to provide all of that information in every set of financial statements. The guidance in this Subtopic requires that general-purpose financial statements include selected information reported on a single basis of segmentation. The method for determining what information to report is referred to as the management approach. The management approach is based on the way that management organizes the segments within the public entity for making operating decisions and assessing performance. Consequently, the segments are evident from the structure of the public entity's internal organization, and financial statement preparers should be able to provide the required information in a cost-effective and timely manner. ##### [280-10-05-4](https://asc.understandingaccounting.org/asc/280/10/#280-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:37.059Z to 2026-09-09T23:22:37.059Z Record version: sha256:4976403208088838206cb4e1d5b6aab09e343317a7627ccd6aed6efe7a18b13c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The management approach facilitates consistent descriptions of a public entity in its annual report and various other published information. It focuses on financial information that a public entity's decision makers use to make decisions about the public entity's operating matters. The components that management establishes for that purpose are called operating segments. ##### [280-10-05-5](https://asc.understandingaccounting.org/asc/280/10/#280-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:37.059Z to 2026-09-09T23:22:37.059Z Record version: sha256:933d279a2833b7cbcaffe23153b56f25b66f8a885ae4caebaff8fd5b9c43b486 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To provide some comparability between public entities, this Subtopic requires that an entity report certain information about the revenues that it derives from each of its products and services (or groups of similar products and services) and about the countries in which it earns revenues and holds assets, regardless of how the entity is organized. As a consequence, some entities are likely to be required to provide limited information that may not be used for making operating decisions and assessing performance. Source downloaded (UTC): 2026-09-09T23:22:39.910Z to 2026-09-09T23:22:39.910Z Record version: sha256:c68b3bd52065b78e29f7993fd73ef2c5bf1b3f791ae8bbe3cd2ad8e714c7ca9b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/280/10/#10-objectives) SEC content: no ##### [280-10-10-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-10-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:39.910Z to 2026-09-09T23:22:39.910Z Record version: sha256:4a7faae7431dc30ec635b473fd995a8e53e8be197b3caf4634965c7a88596f1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The objective of requiring disclosures about segments of a [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") and related information is to provide information about the different types of business activities in which a public entity engages and the different economic environments in which it operates to help users of financial statements do all of the following: 1. a Better understand the public entity's performance 2. b Better assess its prospects for future net cash flows 3. c Make more informed judgments about the public entity as a whole. Source downloaded (UTC): 2026-09-09T23:22:42.649Z to 2026-09-09T23:22:42.649Z Record version: sha256:8796a719eb74d1fa3df4ebc6340bb7a478e28c06fefb87befdaf7c91a938c659 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/280/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [280-10-15-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:42.649Z to 2026-09-09T23:22:42.649Z Record version: sha256:fd4008b305014da0c4601b92fb1c9fbf21850841d9687d9023779b989c6b2b19 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for the Segment Reporting Topic. #### Entities ##### [280-10-15-2](https://asc.understandingaccounting.org/asc/280/10/#280-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:42.649Z to 2026-09-09T23:22:42.649Z Record version: sha256:56c2a7145921e5d148e2e518b61c0342cd97f7bdc96eff7e175a75d6129a01b4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Segment Reporting Topic applies to all [public entities](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market."), with certain exceptions noted below. Entities other than public entities are also encouraged to provide the disclosures described in this Subtopic. ##### [280-10-15-3](https://asc.understandingaccounting.org/asc/280/10/#280-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:42.649Z to 2026-09-09T23:22:42.649Z Record version: sha256:9fe85fcc9be0504937afce41f8d13af88376455d40a6dea05e53b16266151c94 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subtopic does not apply to the following entities: 1. a 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, this Subtopic does apply to those entities if they are public entities and their financial statements are issued separately. 2. b Not-for-profit entities (regardless of whether the entity meets the definition of a public entity as defined above). 3. c Nonpublic entities. Source downloaded (UTC): 2026-09-09T23:22:47.707Z to 2026-09-09T23:22:47.707Z Record version: sha256:6ba724b81610e5d769c7f7865bee58a8e003739ee97c649a0e519084ed39404e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/280/10/#45-other-presentation-matters) SEC content: no ##### [280-10-45-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:47.707Z to 2026-09-09T23:22:47.707Z Record version: sha256:a4684c1e003a10e997d34d6d86e2d65cdc33a35819aee66b79f373cc0cdad9ff Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not require that a [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") report segment cash flow. However, paragraphs [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) and [280-10-50-25](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-25) require that a public entity report certain items that may provide an indication of the cash-generating ability or cash requirements of an entity's operating segments. ##### [280-10-45-2](https://asc.understandingaccounting.org/asc/280/10/#280-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:47.707Z to 2026-09-09T23:22:47.707Z Record version: sha256:58009cd60dccbd9581a5dfed6beeadccd349193afca76795730d6326d0ea6e31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Nothing in this Subtopic is intended to discourage a public entity from reporting additional information specific to that entity or to a particular line of business that may contribute to an understanding of the entity. Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:0080481079175c83b20edeb5349d7ee854b406ea011c71b352844a4516b34611 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/280/10/#50-disclosure) SEC content: no #### Operating Segments ##### [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:7bc4870da9e515e90876bcf18dcfa470cfb7c9a230f0260701db1e146f3c1992 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An [operating segment](https://asc.understandingaccounting.org/glossary/o/#operating-segment "A component of a public entity. See Section 280-10-50 for additional guidance on the definition of an operating segment.") is a component of a [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") that has all of the following characteristics: 1. a It engages in business activities from which it may recognize revenues and incur expenses (including revenues and expenses relating to transactions with other components of the same public entity). 2. b Its operating results are regularly reviewed by the public entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. 3. c Its discrete financial information is available. ##### [280-10-50-2](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:9dec7ef8ef305a9cb0cb07f9809cbecf87c3d0ecb615b566fde161dae6f813a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An operating segment shall include components of a public entity that sell primarily or exclusively to other operating segments of the public entity if the public entity is managed that way. Information about the components engaged in each stage of production is particularly important for understanding vertically integrated public entities in certain businesses, for example, oil and gas entities. This information is also important because different activities within the entity may have significantly different prospects for future cash flows. ##### [280-10-50-3](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:bae064268a911b644ee80a47fa36a5a72a7ab371bd765b753e3be8906585ce00 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An operating segment may engage in business activities for which it has yet to recognize revenues, for example, start-up operations may be operating segments before recognizing revenues. ##### [280-10-50-4](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:e0d5b2e605cf45a4812b824407a08e614f95ef843db8f757ffb22c123faab717 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Not every part of a public entity is necessarily an operating segment or part of an operating segment. For example, a corporate headquarters or certain functional departments may not recognize revenues or may recognize revenues that are only incidental to the activities of the public entity and would not be operating segments. For purposes of this Subtopic, a public entity's pension and other postretirement benefit plans are not considered operating segments. ##### [280-10-50-5](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:c09ff7b4965f2319b83681b08a41af90aba59dafeef6f13f050ecaf670eb2c17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The term _chief operating decision maker_ identifies a function, not necessarily a manager with a specific title. That function is to allocate resources to and assess the performance of the segments of a public entity. Often the chief operating decision maker of a public entity is its chief executive officer or chief operating officer, but it may be a group consisting of, for example, the public entity's president, executive vice presidents, and others. ##### [280-10-50-6](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:42205af5faaba67baac3f8918bc275b03a0459ae62e6747ffcadf072ab694029 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For many public entities, the three characteristics of operating segments described in paragraph [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) clearly identify a single set of operating segments. However, a public entity may produce reports in which its business activities are presented in a variety of different ways. If the chief operating decision maker uses more than one set of segment information, other factors may identify a single set of components as constituting a public entity's operating segments, including the nature of the business activities of each component, the existence of managers responsible for them, and information presented to the board of directors. ##### [280-10-50-7](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:a60282dd37c695c2c5f51bfe21b286cf5342467ebe0dd0ec2c1c15eaac09a917 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Generally, an operating segment has a segment manager who is directly accountable to and maintains regular contact with the chief operating decision maker to discuss operating activities, financial results, forecasts, or plans for the segment. The term _segment manager_ identifies a function, not necessarily a manager with a specific title. ##### [280-10-50-8](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:58f388353f797840ff034125c7be634e2d258e12ce6b682e1a595a01c98bc93d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The chief operating decision maker also may be the segment manager for certain operating segments. A single manager may be the segment manager for more than one operating segment. If the characteristics in paragraphs [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) and [280-10-50-3](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-3) apply to more than one set of components of a public entity but there is only one set for which segment managers are held responsible, that set of components constitutes the operating segments. ##### [280-10-50-9](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:15c292119e22804bd34ff1187379e0685516d0656591d6ea692af7c779fb8c74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The characteristics in paragraphs [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) and [280-10-50-3](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-3) may apply to two or more overlapping sets of components for which managers are held responsible. That structure is sometimes referred to as a matrix form of organization. For example, in some public entities, certain managers are responsible for different product and service lines worldwide, while other managers are responsible for specific geographic areas. The chief operating decision maker regularly reviews the operating results of both sets of components, and financial information is available for both. In that situation, the components based on products and services would constitute the operating segments. ##### [280-10-50-10](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:154bff396d716c47c4728681ac788b35d47e8485f8e4afc3dd2b9925eba6fe4d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall report separately information about each operating segment that meets both of the following criteria: 1. a Has been identified in accordance with paragraphs [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) and [280-10-50-3 through 50-9](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-3) or results from aggregating two or more of those segments in accordance with the following paragraph 2. b Exceeds the quantitative thresholds in paragraph [280-10-50-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12). Paragraphs [280-10-50-13 through 50-18](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-13) specify other situations in which separate information about an operating segment shall be reported. Paragraph [280-10-55-26](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-26) and Examples 1 and 2 (see paragraphs [280-10-55-27 through 55-45](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-27) ) illustrate how to apply the main provisions in this Subtopic for identifying reportable operating segments. ##### [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:45331ed11587d786761c67863487f39b07302a7593b7f12849dfb90f4ef2856a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Operating segments often exhibit similar long-term financial performance if they have similar economic characteristics. For example, similar long-term average gross margins for two operating segments would be expected if their economic characteristics were similar. Two or more operating segments may be aggregated into a single operating segment if aggregation is consistent with the objective and basic principles of this Subtopic, if the segments have similar economic characteristics, and if the segments are similar in all of the following areas (see paragraphs [280-10-55-7A through 55-7C](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-7A) and Example 2, Cases A and B \[paragraphs [280-10-55-33 through 55-36](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-33) \]): 1. a The nature of the products and services 2. b The nature of the production processes 3. c The type or class of customer for their products and services 4. d The methods used to distribute their products or provide their services 5. e If applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities. ##### [280-10-50-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:a61cab615069d6cd965185ed883339537fd1ef396d8fdccf0b00ee62115777ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall report separately information about an operating segment that meets any of the following quantitative thresholds (see Example 2, Cases C, D, and E \[paragraphs [280-10-55-39 through 55-45](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-39) \]): 1. a Its reported revenue, including both sales to external customers and intersegment sales or transfers, is 10 percent or more of the combined revenue, internal and external, of all operating segments. 2. b The absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount, of either: 1. 1 The combined reported profit of all operating segments that did not report a loss 2. 2 The combined reported loss of all operating segments that did report a loss. 3. c Its assets are 10 percent or more of the combined assets of all operating segments. Operating segments that do not meet any of the quantitative thresholds may be considered reportable, and separately disclosed, if management believes that information about the segment would be useful to readers of the financial statements. ##### [280-10-50-13](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:089882c9b8790fcbb7c82abdb6e29230e6e23c68cfe545249a3a4e9660cef27a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may combine information about operating segments that do not meet the quantitative thresholds with information about other operating segments that do not meet the quantitative thresholds to produce a reportable segment only if aggregation is consistent with the objective and basic principles of this Topic, the segments have similar economic characteristics, and the operating segments share a majority of the aggregation criteria listed in paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11). ##### [280-10-50-14](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:2b9684c3dc741190a6ddafd6907a0da287d8ba4cb78bc4b574385c6af4dfc19d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If total of external revenue reported by operating segments constitutes less than 75 percent of total consolidated revenue, additional operating segments shall be identified as reportable segments (even if they do not meet the criteria in paragraph [280-10-50-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12)) until at least 75 percent of total consolidated revenue is included in reportable segments. ##### [280-10-50-15](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:6b915a1738073234c2e9c484e14a2a15df67b634873b2233780f40cbc8a2fd20 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about other business activities and operating segments that are not reportable shall be combined and disclosed in an all other category separate from other reconciling items in the reconciliations required by paragraphs [280-10-50-30 through 50-31](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-30) . The sources of the revenue included in the all other category shall be described. ##### [280-10-50-16](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:b409057ad9758361465150dcb1771155ee97828d1f6dfb55d14885fc6e4dedbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If management judges an operating segment identified as a reportable segment in the immediately preceding period to be of continuing significance, information about that segment shall continue to be reported separately in the current period even if it no longer meets the criteria for reportability in paragraph [280-10-50-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12). ##### [280-10-50-17](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:054890fc5ca24f8972215452185bbeea3a1157d10e938f54844c375305e835c0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an operating segment is identified as a reportable segment in the current period due to the quantitative thresholds, prior-period segment data presented for comparative purposes shall be recast to reflect the newly reportable segment as a separate segment even if that segment did not satisfy the criteria for reportability in paragraph [280-10-50-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12) in the prior period unless it is impracticable to do so. For purposes of this Subtopic, information is impracticable to present if the necessary information is not available and the cost to develop it would be excessive. ##### [280-10-50-18](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:d9c2fb1dd4fc4ad7f8ee5f08de2b8190655e8fea332c860c1c136696e5f07dcf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. There may be a practical limit to the number of reportable segments that a public entity separately discloses beyond which segment information may become overly detailed. Although no precise limit has been determined, as the number of segments that are reportable in accordance with paragraphs [280-10-50-12 through 50-17](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12) increases above 10, the public entity should consider whether a practical limit has been reached. ##### [280-10-50-18A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-18A) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:ffd24b89139b544a99c8d393dff893d0d579e931819716b9188bf5a923f1eb0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity need not aggregate similar segments, and it may present segments that fall below the quantitative thresholds. ##### [280-10-50-19](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:9c918972866ff37cc559a1f8ead78476a591727af1b6f97fe66ea0cc8319d5e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Public entities are encouraged to report information about segments that do not meet the quantitative thresholds if management believes that it is material. Those who are familiar with the particular circumstances of each public entity must decide what constitutes material. ##### [280-10-50-20](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:71e06a8ee47c29df2c37cab73ec8f18e5fe6d0362bc5895c5c0a0c3087dbe5cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All public entities, including those public entities that have a single reportable segment, shall disclose all of the following for each period for which an income statement is presented. However, reconciliations of balance sheet amounts for reportable segments to consolidated balance sheet amounts are required only for each year for which a balance sheet is presented. Previously reported information for prior periods shall be recast as described in paragraphs [280-10-50-34 through 50-35](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-34) . (See paragraphs [280-10-55-15D through 55-15F](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15D) for additional guidance for public entities that have a single reportable segment.) ##### [280-10-50-21](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:9c84a3cbcac6560e65a16d7ded6bfff6189e583e02fca9b1e6745bf27c1f25b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall disclose the following general information (see Example 3, Case A \[paragraph [280-10-55-47](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-47)\]): 1. a Factors used to identify the public entity's reportable segments, including the basis of organization (for example, whether management has chosen to organize the public entity around differences in products and services, geographic areas, regulatory environments, or a combination of factors and whether operating segments have been aggregated) 2. b Types of products and services from which each reportable segment derives its revenues 3. c The title and position of the individual or the name of the group or committee identified as the chief operating decision maker. ##### [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:122f72a3c1d1eb72875812d525b414b123532fb2ae994c3483ba6fff0f4fc6f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall report a measure of profit or loss and total assets for each reportable segment. A public entity also shall disclose all of the following about each reportable segment if the specified amounts are included in the measure of segment profit or loss reviewed by the chief operating decision maker or are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss (see Example 3, Case B \[paragraph [280-10-55-48](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-48)\]): 1. a Revenues from external customers 2. b Revenues from transactions with other operating segments of the same public entity 3. c Interest revenue 4. d Interest expense 5. e Depreciation, depletion, and amortization expense 6. f Unusual items as described in paragraph [220-20-45-1](https://asc.understandingaccounting.org/asc/220/20/#220-20-45-1) 7. g Equity in the net income of investees accounted for by the equity method 8. h Income tax expense or benefit 9. i [Subparagraph superseded by Accounting Standards Update No. 2015-01](https://asc.understandingaccounting.org/updates/asu-2015-01/). 10. j Significant noncash items other than depreciation, depletion, and amortization expense. A public entity shall report interest revenue separately from interest expense for each reportable segment unless a majority of the segment's revenues are from interest and the chief operating decision maker relies primarily on net interest revenue to assess the performance of the segment and make decisions about resources to be allocated to the segment. In that situation, a public entity may report that segment's interest revenue net of its interest expense and disclose that it has done so. Nonetheless, a public entity shall separately disclose interest expense if it is a significant segment expense in accordance with paragraph [280-10-50-26A.](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A) ##### [280-10-50-23](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:e101cf97038fc93194468e69b594a63559a0045b604ec39e80c3593392b5c501 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of interest revenue and interest expense included in reported segment profit or loss is intended to provide information about the financing activities of a segment. ##### [280-10-50-24](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:8a304559c8c1043ee36e13de0d5f11783d3214c2cfcfdbe744e12c3f994d905d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a segment is primarily a financial operation, interest revenue probably constitutes most of segment revenues and interest expense will constitute most of the difference between reported segment revenues and reported segment profit or loss. If the segment has no financial operations or only immaterial financial operations, no information about interest is required unless interest expense is a significant segment expense to be disclosed in accordance with paragraph [280-10-50-26A.](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A) ##### [280-10-50-25](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:2239cb7052580c6a8df88527d277d9982b668d8595fadabad9f742a3b2569b11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall disclose both of the following about each reportable segment if the specified amounts are included in the determination of segment assets reviewed by the chief operating decision maker or are otherwise regularly provided to the chief operating decision maker, even if not included in the determination of segment assets: 1. a The amount of investment in equity method investees 2. b Total expenditures for additions to long-lived assets other than any of the following (see Example 3, Case B \[paragraph [280-10-55-48](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-48)\]): 1. 1 Financial instruments 2. 2 Long-term customer relationships of a financial institution 3. 3 Mortgage and other servicing rights 4. 4 Deferred policy acquisition costs 5. 5 Deferred tax assets. ##### [280-10-50-26](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:af22f08d06d5e1f4b0abee5d7efc4623b3c28a315101a947763efb74fc2c007f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If no asset information is provided for a reportable segment, that fact and the reason therefore shall be disclosed. ##### [280-10-50-26A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:edbb51155010ffcc2517b550ad16b6bdd9a8bfa4f93fd9c165db2a64ac114a4e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall disclose for each reportable segment the significant expense categories and amounts that are regularly provided to the chief operating decision maker and included in reported segment profit or loss. When determining the segment expense categories and amounts that shall be disclosed, a public entity shall first identify the expenses from the segment level information that is regularly provided to the chief operating decision maker and then disclose those segment expense categories and amounts that are significant. A public entity shall consider relevant qualitative and quantitative factors when determining whether segment expense categories and amounts are significant. When applying this guidance, a public entity shall evaluate for disclosure a segment expense that is regularly provided to the chief operating decision maker as well as a segment expense that is easily computable from information that is regularly provided to the chief operating decision maker. Paragraphs [280-10-55-15A through 55-15B](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15A) provide additional guidance on determining whether segment expense amounts can be easily computed for purposes of applying the guidance in this paragraph. ##### [280-10-50-26B](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26B) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:cbf2fdc1535d78f084dedc7528b20408c852d62f2322443caac9c2fda4e20eea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall disclose for each reportable segment an amount for other segment items. The amount for other segment items is the difference between reported segment revenues less the segment expenses disclosed in accordance with paragraph 280-10-50-26A and reported segment profit or loss. A qualitative description of the composition of other segment items also shall be disclosed. Other segment items may include: 1. a The total of a reportable segment’s expenses that are included in the reported measure(s) of a segment’s profit or loss but are not regularly provided to the chief operating decision maker. 2. b The total of a reportable segment’s expenses that are included in the reported measure(s) of a segment’s profit or loss but are not disclosed in accordance with paragraph 280-10-50-26A. A public entity is not precluded from separately disclosing an expense that is not significant for one reportable segment but is significant for another of its segments. However, if a segment expense that is not significant is not separately disclosed, it shall be included as part of other segment items. 3. c The total of a reportable segment’s gains, losses, or other amounts that also are included in each reported measure of a segment’s profit or loss. 4. d The items and amounts required by paragraph 280-10-50-22 when those specified items and amounts are included within the reported measure of segment profit or loss but are not disclosed in accordance with paragraph 280-10-50-26A. For example, a public entity may report net income as the measure of a segment’s profit or loss. In that case, if income tax expense by segment is not regularly provided to the chief operating decision maker, it may be included within other segment items. However, income tax expense is still required to be disclosed in accordance with paragraph 280-10-50-22. ##### [280-10-50-26C](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26C) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:eaee6bee60e13e55d62d0ba3ba24ee930dcf25816fe0ece2d8150717b509fd04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An amount and qualitative description of the composition of other segment items shall be disclosed for each reportable segment even when a public entity does not separately report significant segment expense categories and amounts in accordance with paragraph 280-10-50-26A for one or more of its reportable segments. Additionally, if a public entity does not disclose significant expense categories and amounts for one or more of its reportable segments, it shall explain the nature of the expense information the chief operating decision maker uses to manage operations (see paragraph [280-10-55-15G](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15G)). ##### [280-10-50-27](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:24bb1ad548ec64af01cc515451ed802c6497aef23eeaf2296836fc745d21aff4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amount of each segment item reported shall be the measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segment and assessing its performance. Adjustments and eliminations made in preparing a public entity's general-purpose financial statements and allocations of revenues, expenses, and gains or losses shall be included in determining reported segment profit or loss only if they are included in the measure of the segment's profit or loss that is used by the chief operating decision maker. Similarly, only those assets that are included in the measure of the segment's assets that is used by the chief operating decision maker shall be reported for that segment. If amounts are allocated to reported segment profit or loss or assets, those amounts shall be allocated on a reasonable basis. ##### [280-10-50-28](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:80dbc41e0a6655a37351e522e475592c9ba3a7de3adc6b8818b688b1cc8f06c6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the chief operating decision maker uses only one measure of a segment's assets in assessing segment performance and deciding how to allocate resources, segment assets shall be reported at that measure. If the chief operating decision maker uses more than one measure of a segment's assets, the reported measure shall be that which management believes is determined in accordance with the measurement principles most consistent with those used in measuring the corresponding amounts in the public entity's consolidated financial statements. ##### [280-10-50-28A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28A) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:956574a8c763dbfea48b5626a327131b6bdcb516d91649f3e2f13f3718a09a5a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the chief operating decision maker uses only one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, segment profit or loss shall be reported at that measure. If the chief operating decision maker uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, a public entity may report one or more of those additional measures of segment profit. However, at least one of the reported segment profit or loss measures (or the single reported measure, if only one is disclosed) shall be that which management believes is determined in accordance with the measurement principles most consistent with those used in measuring the corresponding amounts in a public entity’s consolidated financial statements. ##### [280-10-50-28B](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28B) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:6e8fad2c186624e779aa5b20ec7ae476f1fabe2ad10f8a2e5d75a6e6ecf4077e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a public entity discloses more than one measure of a segment’s profit or loss in the current period, it shall report the additional measure or measures for the prior periods in which the measure or measures were provided to the chief operating decision maker. For example, if a public entity reports an additional measure in the current period for gross profit for a reportable segment, it should disclose gross profit for the reportable segment in the prior comparative periods if gross profit was provided to the chief operating decision maker in those periods. A public entity is not precluded from reporting the additional measure or measures for the prior periods in which the measure or measures were not provided to the chief operating decision maker. ##### [280-10-50-28C](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28C) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:b0297bd959bce802ce4d186e442207a291615c5e4e5afc2fe6cbe34c8f1b5de8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The disclosure requirements in paragraphs [280-10-50-22 through 50-24](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22), paragraphs [280-10-50-26A through 50-26C](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A), and paragraph 280-10-50-29 apply to each reported measure of a segment’s profit or loss. The reconciliation requirement in paragraph 280-10-50-30(a) applies to the total of the reportable segments’ revenues to a public entity’s consolidated revenues. The reconciliation requirement in paragraph 280-10-50-30(b) applies to the total of the reportable segments’ amount for each measure of profit or loss. ##### [280-10-50-29](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:474e335c84d78dad33aa4875bd5cf5c6356fc1b767858522a19d7f3b6cf021cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall provide an explanation of the measurements of segment profit or loss and segment assets for each reportable segment. A public entity shall disclose all of the following (see Example 3, Cases A through C \[paragraphs [280-10-55-47 through 55-50](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-47) and Example 4, Cases A through B \[paragraphs [280-10-55-53 through 55-55](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-53)\]): 1. a The basis of accounting for any transactions between reportable segments. 2. b The nature of any differences between the measurements of the reportable segments' profits or losses and the public entity's consolidated income before income taxes and discontinued operations (if not apparent from the reconciliations described in paragraphs [280-10-50-30 through 50-31](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-30) ). Those differences could include accounting policies and policies for allocation of centrally incurred costs that are necessary for an understanding of the reported segment information. 3. c The nature of any differences between the measurements of the reportable segments' assets and the public entity's consolidated assets (if not apparent from the reconciliations described in paragraphs [280-10-50-30 through 50-31](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-30) ). Those differences could include accounting policies and policies for allocation of jointly used assets that are necessary for an understanding of the reported segment information. 4. d The nature of any changes from prior periods in the measurement methods used to determine reported segment profit or loss, including significant changes from prior periods to the measurement methods of expenses, the method for allocating expenses to a segment, or changes in the method for allocating centrally incurred expenses, and the effect, if any, of those changes on the measure of segment profit or loss. 5. e The nature and effect of any asymmetrical allocations to segments. For example, a public entity might allocate depreciation expense to a segment without allocating the related depreciable assets to that segment. 6. f How the chief operating decision maker uses the reported measure(s) of segment profit or loss in assessing segment performance and deciding how to allocate resources. ##### [280-10-50-30](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:1ae4beff5c650d5ce5e5ab8ffccdc40bd067cad3121515d2dca14966d4eec0d6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall provide reconciliations of all of the following (see Example 3, Cases B and C \[paragraphs [280-10-55-48 through 55-50](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-48) \] and Example 4, Case B \[paragraph [280-10-55-55](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-55)\]): 1. a The total of the reportable segments' revenues to the public entity's consolidated revenues. 2. b The total of the reportable segments' amount for each measure of profit or loss to the public entity's consolidated income before income taxes and discontinued operations. However, if a public entity allocates items such as income taxes to segments, the public entity may choose to reconcile the total of the segments' measures of profit or loss to consolidated income after those items. 3. c The total of the reportable segments' assets to the public entity's consolidated assets. 4. d The total of the reportable segments' amounts for every other significant item of information disclosed to the corresponding consolidated amount (except for the segment disclosures required by paragraphs [280-10-50-26A through 50-26B](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A) ). For example, a public entity may choose to disclose liabilities for its reportable segments, in which case the public entity would reconcile the total of reportable segments' liabilities for each segment to the public entity's consolidated liabilities if the segment liabilities are significant. ##### [280-10-50-31](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:9e84327305bec01ea356d6c44ba07b45217b5ca810c524778fd8fcc43512ef86 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All significant reconciling items shall be separately identified and described. For example, the amount of each significant adjustment to reconcile accounting methods used in determining segment profit or loss to the public entity's consolidated amounts shall be separately identified and described. ##### [280-10-50-32](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-32) Pending content: yes Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:ed2f5971f1674f491d1d9e45b7898646900658d58018f129cb85ea204c09208d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall disclose all of the following about each reportable segment in condensed financial statements of interim periods: 1. a [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 2. b [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 3. c [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 4. d [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 5. e A description of differences from the last annual report in the basis of segmentation or in the basis of measurement of segment profit or loss 6. ee The segment information required by paragraphs [280-10-50-22 through 50-26C](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) and [280-10-50-28A through 50-28B](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28A) 7. f A reconciliation of the total of the reportable segments' amount for each measure of profit or loss, including the total of the reportable segments’ amount for any additional measure of profit or loss disclosed in accordance with paragraph [280-10-50-28A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28A), to the public entity's consolidated income before income taxes and discontinued operations. However, if a public entity allocates items such as income taxes to segments, the public entity may choose to reconcile the total of the segments' measures of profit or loss to consolidated income after those items. Significant reconciling items shall be separately identified and described in that reconciliation. Transition date:(P) December 16, 2027; (N) December 16, 2028Transition guidance: [270-10-65-1](https://asc.understandingaccounting.org/asc/270/10/#270-10-65-1)A public entity shall disclose all of the following about each reportable segment in [condensed statements](https://asc.understandingaccounting.org/glossary/c/#condensed-statements "(P) December 16, 2027; (N) December 16, 2028 270-10-65-1 Financial statements that are presented at a level that is more aggregated than the annual financial statements or have limited notes subject to the disclosure requirements in Topic 270 or both. (U.S. Securities and Exchange Commission [SEC] registrants are required to consider the guidance in paragraph 270-10-S45-2. See Regulation S-X Rule 10-01 [17 CFR 210.10-01] and Regulation S-X Rule 8-03 [17 CFR 210.8-03].)")of interim periods: 1. a [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 2. b [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 3. c [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 4. d [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). 5. e A description of differences from the last annual report in the basis of segmentation or in the basis of measurement of segment profit or loss 6. ee The segment information required by paragraphs [280-10-50-22 through 50-26C](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) and [280-10-50-28A through 50-28B](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28A) 7. f A reconciliation of the total of the reportable segments' amount for each measure of profit or loss, including the total of the reportable segments’ amount for any additional measure of profit or loss disclosed in accordance with paragraph [280-10-50-28A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28A), to the public entity's consolidated income before income taxes and discontinued operations. However, if a public entity allocates items such as income taxes to segments, the public entity may choose to reconcile the total of the segments' measures of profit or loss to consolidated income after those items. Significant reconciling items shall be separately identified and described in that reconciliation. ##### [280-10-50-33](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:1c0cfe6ccda1a26e7a8cc815e2d07edcd29df700df0ef63a0c5bebab70f78c72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interim disclosures are required for the current quarter and year-to-date amounts. The information in paragraph [280-10-50-32](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-32) with respect to the current quarter and the current year-to-date or the last 12 months to date should be furnished together with comparable data for the preceding year. ##### [280-10-50-34](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:993949b5975e9512000d2ceaa5dfdedd935cb722a11b8295db848dc882389863 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a public entity changes the structure of its internal organization in a manner that causes the composition of its reportable segments to change or the public entity changes the segment information that is regularly provided to the chief operating decision maker in a manner that causes the identification of significant segment expenses to change, the corresponding information for earlier periods, including interim periods, shall be recast unless it is impracticable to do so. Accordingly, a public entity shall recast to conform to the current-period presentation those individual items of disclosure that it can practicably recast but need not recast those individual items, if any, that it cannot practicably recast. In those cases, a public entity shall disclose whether it has recast the corresponding items of segment information for earlier periods. ##### [280-10-50-34A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-34A) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:f95c030fb5068d79b7418a0e67b51776e451c1f5e9148789cb34862448cc82a0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, a fundamental reorganization of an entity may cause it to be very difficult and expensive to recast segment information and, therefore, it may not be practicable. ##### [280-10-50-35](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:7665ff6c0b3f1695f39e2f234e00fa50e11cc4cf3b07370bfd56efe95fdcb76e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a public entity has changed the structure of its internal organization in a manner that causes the composition of its reportable segments to change or has changed the segment information that is regularly provided to the chief operating decision maker in a manner that causes the identification of significant segment expenses to change, and if segment information for earlier periods, including interim periods, is not recast to reflect the change, the public entity shall disclose in the year in which the change occurs segment information for the current period under both the old basis and the new basis of segmentation or the old and new significant segment expense categories, respectively, unless it is impracticable to do so. ##### [280-10-50-36](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:6c9c3335f33fcc69886d1a92eb4861c4f44d6baa0a5261df1f483a0025195d0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although recasting is not required to reflect a change in measurement of segment profit and loss, it is preferable to show all segment information on a comparable basis to the extent it is practicable to do so. If prior years' information is not recast, paragraph [280-10-50-29(d)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29) nonetheless requires disclosure of the nature of any changes from prior periods in the measurement methods, including significant changes from prior periods to the measurement methods of expenses, the method for allocating expenses to a segment, or changes in the method for allocating centrally incurred expenses, used to determine reported segment profit or loss and the effect, if any, of those changes on the measure of segment profit or loss. ##### [280-10-50-37](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:dfa510639bf189c50cf2a6a917c3037e2802be2eeed9d72b9d35ce972073e824 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [280-10-50-38](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:3779e8809a98671522696ef9eb45f66b5fa22bb5d4a67c90642aa73cafb26338 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [280-10-50-40 through 50-42](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-40) apply to all public entities subject to this Subtopic including those public entities that have a single reportable segment. Some public entities' business activities are not organized on the basis of differences in related products and services or differences in geographic areas of operations. That is, a public entity's segments may report revenues from a broad range of essentially different products and services, or more than one of its reportable segments may provide essentially the same products and services. Similarly, a public entity's segments may hold assets in different geographic areas and report revenues from customers in different geographic areas, or more than one of its segments may operate in the same geographic area. Information required by paragraphs [280-10-50-40 through 50-42](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-40) need be provided only if it is not provided as part of the reportable operating segment information required by this Subtopic. ##### [280-10-50-39](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:e6e1eb559f38bc18f3c84ab4134d5e0012c681e8824cd62ec30f52f65646b963 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Entity-wide disclosures are required only for annual reporting. ##### [280-10-50-40](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-40) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:d894f9d6df51ec7f16eb71503af62c050322cb0c3f1fe25fc137c5036701fa5f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall report the revenues from external customers for each product and service or each group of similar products and services unless it is impracticable to do so. The amounts of revenues reported shall be based on the financial information used to produce the public entity's general-purpose financial statements. If providing the information is impracticable, that fact shall be disclosed. ##### [280-10-50-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-41) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:ff294281efdffb37e978519044b065f36b00d3b62c23a5d9d3410f603d9b7601 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall report the following geographic information unless it is impracticable to do so (see Example 3, Case D \[paragraph [280-10-55-51](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-51)\]): 1. a Revenues from external customers attributed to the public entity's country of domicile and attributed to all foreign countries in total from which the public entity derives revenues. If revenues from external customers attributed to an individual foreign country are material, those revenues shall be disclosed separately. A public entity shall disclose the basis for attributing revenues from external customers to individual countries. 2. b Long-lived assets other than financial instruments, long-term customer relationships of a financial institution, mortgage and other servicing rights, deferred policy acquisition costs, and deferred tax assets located in the public entity's country of domicile and located in all foreign countries in total in which the public entity holds assets. If assets in an individual foreign country are material, those assets shall be disclosed separately. The amounts reported shall be based on the financial information that is used to produce the general-purpose financial statements. If providing the geographic information is impracticable, that fact shall be disclosed. A public entity may wish to provide, in addition to the information required by the preceding paragraph, subtotals of geographic information about groups of countries. ##### [280-10-50-42](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-42) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:51.525Z to 2026-09-09T23:22:51.525Z Record version: sha256:e0a7774626a9b1df633299b3f19faf6a8f6d19f3fe01c65d4694af190943ff13 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity shall provide information about the extent of its reliance on its major customers. If revenues from transactions with a single external customer amount to 10 percent or more of a public entity's revenues, the public entity shall disclose that fact, the total amount of revenues from each such customer, and the identity of the segment or segments reporting the revenues. The public entity need not disclose the identity of a major customer or the amount of revenues that each segment reports from that customer. For purposes of this Subtopic, a group of entities known to a reporting public entity to be under common control shall be considered as a single customer, and the federal government, a state government, a local government (for example, a county or municipality), or a foreign government each shall be considered as a single customer (see Example 3, Case E \[paragraph [280-10-55-52](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-52)\]). Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:7165bb3857c38dc7926fd9c4aa8d653df779520efc678b2d3e0e78ed9973c5d3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/280/10/#55-implementation-guidance-and-illustrations) SEC content: no ##### [280-10-55-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:caacd8949e38082771e2fc58649a58811b259563f8ef6841d907f134eaa5e58f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Implementation Guidance and Illustrations Section, which is an integral part of the requirements of this Subtopic, provides general guidance to assist users in the preparation of segment disclosures to be included in general-purpose financial statements of public entities. The Examples provide illustrations of the required disclosures and the determination of reportable segments. #### Implementation Guidance ##### [280-10-55-2](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:036eb2310ca165e31a28c804b822d4afbe09c0474a17a6fe2785abec11ce8ba2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An equity method investee could be considered an [operating segment](https://asc.understandingaccounting.org/glossary/o/#operating-segment "A component of a public entity. See Section 280-10-50 for additional guidance on the definition of an operating segment."), if, under the specific facts and circumstances being considered, it meets the definition in paragraphs [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) and [280-10-50-3](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-3). An investee accounted for by the equity method could be considered an operating segment even though the investor has no control over the performance of the investee. Paragraph [280-10-50-1(b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) provides that an operating segment is one whose operating results are regularly reviewed by the public entity's chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Management may regularly review the operating results and performance of an equity method investee for purposes of evaluating whether to retain the investor-investee relationship. This Subtopic does not require that the chief operating decision maker be responsible for making decisions about resources to be allocated within the segment. That is, this Subtopic does not require that the chief operating decision maker be responsible for making decisions at the investee operating level that affect its operations and performance. Therefore, control over the investee is not a criterion for the investee to be considered an operating segment. For information relating to equity method investees, see Topic 323. ##### [280-10-55-3](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:1e4207cd0ec9f5edd39d35234faf2ba3fabe6fae5e068b4931b74a5896e5ff10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A corporate division that recognizes revenues (for example, a treasury operation that recognizes interest income) and incurs expenses could be considered an operating segment, if, under the specific facts and circumstances being considered, it meets the definition in paragraph [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1). Some believe that corporate divisions could not be considered operating segments because paragraph [280-10-50-4](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-4) indicates that not every part of a [public entity](https://asc.understandingaccounting.org/glossary/p/#public-entity "A business entity or a not-for-profit entity that meets any of the following conditions: It has issued debt or equity securities or is a conduit bond obligor for conduit debt securities that are traded in a public market (a domestic or foreign stock exchange or an over-the-counter market, including local or regional markets). It is required to file financial statements with the Securities and Exchange Commission (SEC). It provides financial statements for the purpose of issuing any class of securities in a public market.") is necessarily an operating segment or part of an operating segment, for example, a corporate headquarters or certain functional departments that do not recognize revenues or that recognize revenues that are only incidental to the activities of the public entity. ##### [280-10-55-4](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:7a15dcccd4ae519166b437c4551bc341db5e7e257000e2bf3042f809378afbb1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. However, a corporate division that recognizes revenues and that has available discrete financial information and whose operating results are reviewed regularly by the chief operating decision maker should be considered an operating segment. Even if the revenues are considered incidental, this Subtopic does not preclude such a division from being a reportable segment if management believes the additional information may contribute to a better understanding of the public entity. ##### [280-10-55-5](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:c5124fe463af1479222237fa2b0784e0ca0a76987de72ff8104c7ac0c2fe6da2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A division that recognizes revenues and incurs expenses but does not have any assets associated with it for internal reporting purposes could be considered an operating segment, if, under the specific facts and circumstances being considered, it otherwise meets the definition in paragraph [280-10-50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1). For example, assume Division A of a public entity conducts business with a separate class of customer using assets shared with Division B and Division B allocates expenses associated with those shared assets to Division A, but the assets, themselves, are presented in the internal financial reports of Division B. A public entity may allocate an expense to a segment without allocating the related asset; however, disclosure of that fact is required. Therefore, allocation of assets is not a criterion for the component to be considered an operating segment. ##### [280-10-55-6](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:655e19996b6ccf4075d8f8af019f0bd5cd09c86c4c76d22a542324a36598168e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [280-10-50-26](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26) explains that, if no asset information is provided for a reportable segment, that fact and the reason therefore shall be disclosed. ##### [280-10-55-7](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:3bb3809a23744b33e84bc17fe76e20b4d830f529b099c83906be86b8c374bc16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a reportable segment meets the conditions in paragraphs [205-20-45-1A through 45-1G](https://asc.understandingaccounting.org/asc/205/20/#205-20-45-1A) to be reported in discontinued operations, an entity is not required to also disclose the information required by this Subtopic. Paragraph [280-10-55-19](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-19) addresses whether there is a need to recast previously reported information if there is a disposal of a component that was previously disclosed as a reportable segment. ##### [280-10-55-7A](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-7A) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:6e7e45e47599816438979c6daae8f52f2e610744d3220657419f8b2a51bc9419 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) states that operating segments are considered to be similar if they can be expected to have essentially the same future prospects. Therefore, the similarity of the economic characteristics should be evaluated based on future prospects and not necessarily on the current indicators only. In other words, if the segments do not currently have similar gross margins and sales trends but the economic characteristics and the other five criteria are met and the segments are expected to again have similar long-term average gross margins and sales trends, the two segments may be aggregated. ##### [280-10-55-7B](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-7B) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:c32d7637cd7ae44567515c9b59a929939097d4e5170081e8fd15fad3c65bad12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Likewise, if segments generally do not have similar economic characteristics, but in the current year have similar gross margins or sales trends and it is not expected that the similar gross margins or sales trends will continue in the future, it should not be presumed that the segments should be aggregated for the current-year segment disclosures just because current economic measures are similar. ##### [280-10-55-7C](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-7C) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:34e5dbdc92326170df3e5d8d2db5dd39cf3f1ca36311ceececfb2ffc7a3c8dd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Aggregation of segments should be consistent with the objective and basic principles of this Subtopic—to provide information about the different types of business activities in which a public entity engages and the different economic environments in which it operates in order to help users of financial statements better understand the public entity's performance, better assess its prospects for future net cash flows, and make more informed judgments about the public entity as a whole. This Subtopic mentions that segments having similar economic characteristics would be expected to have similar long-term average gross margins. That measure is used, only as an example, because gross margin is a measure of profitability that is less likely to be affected by allocations. Evaluating similar economic characteristics is a matter of judgment that depends on specific facts and circumstances. ##### [280-10-55-8](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:6b209042a9724e798a55b9fa1afb7a34562183b9a0e240245c56d85fddde751b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In measuring the performance of its equity investees, proportionate consolidation shall be used for reporting segment information if that is the way in which such information is reviewed by the chief operating decision maker. This Subtopic specifies that the amount of each segment item reported shall be the measure reported to the chief operating decision maker for purposes of making decisions about allocating resources to the segment and assessing its performance. If proportionate consolidation is used for segment reporting, this Subtopic also requires disclosure of the accounting policy followed for segment reporting (see paragraph [280-10-50-29(b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29)), the elimination of the investee's revenues and assets in reconciling to consolidated results (see paragraphs [280-10-50-30 through 50-31](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-30) ), and the investment in and equity income from the investee (see paragraphs [280-10-50-22(g)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) and [280-10-50-25(a)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-25)). Even though the proportionate consolidation method may be used for internal reporting purposes (and thus for external reporting of segment information), that method is not permitted for purposes of preparing general-purpose financial statements in accordance with generally accepted accounting principles (GAAP) except where it is established industry practice (for example, in some oil and gas venture accounting). ##### [280-10-55-9](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:e5d0707e7052c20c4e563da1356992831e5820b6eb65f7107a6e76671e67a573 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). ##### [280-10-55-10](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:539e0c628c2990dea4ba55c01cdad4caf2f73d87c614d24e599406b02e40e07f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2023-07](https://asc.understandingaccounting.org/updates/asu-2023-07/). ##### [280-10-55-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-11) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:aa99b7f48de8b84761e9ed5202b4b16c3fa5028d7c4618d21b4b580e512bb8a3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For internal reporting purposes, if interest expense is charged to a segment on advances from another segment and the interest is included in the measure of performance, the amounts of interest expense and interest income shall include the amounts charged internally between the segments. Paragraph [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) requires disclosure of segment interest if it is included in the measure of segment profit or loss that is reviewed by the chief operating decision maker and, because the internal measure used by the chief operating decision makers includes intra-entity interest, that interest would be part of the measure reported. In addition, paragraph [280-10-50-27](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-27) discusses items that are included in segment amounts reported to the chief operating decision maker and therefore included in the segment reported amounts. Under the management approach, the amounts used by management are the amounts that are required to be disclosed; adjusting those amounts for any reason is not permitted. Paragraph [280-10-50-29(a)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29) also requires disclosure of the basis of accounting for transactions between reportable segments. ##### [280-10-55-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-12) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:6bf423715d95809de94c9624b7f3821a7e0b7e1a1d5738577ac55c5c39a97071 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The chief operating decision maker may evaluate the performance of its segments based on earnings before interest, taxes, depreciation, and amortization. Included in the management reports reviewed by the chief operating decision maker are summaries of depreciation and amortization expense related to each of the segments. ##### [280-10-55-13](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-13) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:1ffd7828a7731fb9c983c14e49d3a9826e2ecd5ec181b1dc6fd29bc30da61fd3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Since the reports include depreciation and amortization expense these amounts are required to be disclosed for each reportable segment even though the chief operating decision maker does not include these amounts in evaluating performance of the segment. Paragraph [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) requires that a public entity report a measure of profit or loss for each reportable segment. Paragraph [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) requires disclosure of certain other amounts about each reportable segment if the specified amounts are included in the measure of segment profit or loss reviewed by the chief operating decision maker. Although, in this case, depreciation and amortization expense is not included in the measure of segment profit or loss that is reviewed by the chief operating decision maker, such amounts are provided to the chief operating decision maker by segment. It is, therefore, assumed that the chief operating decision maker uses this information in evaluating the performance of the public entity's segments and, accordingly, disclosure of depreciation and amortization expense by each reportable segment would be required. This conclusion is based on paragraph [280-10-50-27](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-27). This conclusion does not change the requirement that, in this example, the measure of segment profit or loss to be disclosed for each reportable segment be based on the segment earnings before interest, taxes, depreciation, and amortization data that are used by the chief operating decision maker. ##### [280-10-55-14](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-14) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:cc08c856f9f99f160213009ae6f76722b75b956aa89459502dce533cd235c1de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Note that this case deals specifically with earnings before interest, taxes, depreciation, and amortization as the measure of segment profit or loss and depreciation and amortization expense as the information that is excluded from earnings before interest, taxes, depreciation, and amortization but otherwise provided to the chief operating decision maker for purposes of evaluating segment performance. However, this example is applicable to any similar situation. That is, if the amounts of the items required by paragraphs [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) and [280-10-50-25](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-25) are included by segment in reports that are regularly provided to the chief operating decision maker, even though they are not included in the measure of segment profit or loss or in the determination of segment assets, as applicable, that is reviewed by the chief operating decision maker, then disclosure of those amounts is required. ##### [280-10-55-15](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:7ab25ede6912bf0ac0360464226d49548b4f8cf12c42855301a0e0765c951a1f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In other words, the segment profit or loss amounts listed in paragraph [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) are required if they are included in the measure of segment profit or loss that is used by the chief operating decision maker or if they are otherwise regularly provided to the chief operating decision maker, even if not included in that measure. Disclosure of those amounts is required even though they may not be included in the measure of segment profit or loss or in the determination of segment assets, as applicable, that is reviewed by the chief operating decision maker. ##### [280-10-55-15A](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15A) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:7b19d8efbfc3fe4e281778f5e9c14a1cdd8ddffef776340ab2aa00065892c798 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The information that is regularly provided to the chief operating decision maker may include segment expense information that is expressed in a form other than actual amounts, for example, as a ratio or an expense as a percentage of revenue. The requirements in paragraph [280-10-50-26A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A) apply to expense amounts that can be easily computed from the information that is regularly provided to the chief operating decision maker. ##### [280-10-55-15B](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15B) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:ccaecd5311de9643c3b22e97ee5f78d14c80f2e722f8839268721456055ed2a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if the information that is regularly provided to the chief operating decision maker includes a segment revenue amount and a segment gross margin amount, segment cost of sales can be easily computed from this information. Therefore, if cost of sales is significant, an entity should disclose the category and amount in accordance with paragraph [280-10-50-26A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A). As another example, the information that is regularly provided to the chief operating decision maker may include a segment revenue amount and segment warranty expense expressed as a percentage of segment revenue. In this example, segment warranty expense can be easily computed from this information. Therefore, if warranty expense is significant, the entity should disclose the category and amount in accordance with paragraph [280-10-50-26A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A). ##### [280-10-55-15C](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15C) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:4c517bb0b0300f72de445f897a41f666362c88172fdc70e224117dd1dfc5013a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the information regularly provided to the chief operating decision maker contains a category and amount for allocated corporate overhead expenses by segment that is included in reported segment profit or loss, a public entity should assess that category and amount for disclosure in accordance with paragraph [280-10-50-26A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A). For example, an entity would disclose allocated corporate overhead if it is a significant segment expense in accordance with paragraph [280-10-50-26A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A). ##### [280-10-55-15D](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15D) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:2d4576edb1345b092636d9a31dcfc3e05954e858317230bdd77a57b5b37da90f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All public entities, including those public entities that have a single reportable segment, are subject to the requirements of this Topic in its entirety. Paragraph [280-10-50-1(b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-1) states that a characteristic of an operating segment is that it is a component of an entity whose operating results are regularly reviewed by the public entity’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Paragraph [280-10-50-4](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-4) states that not every part of a public entity is necessarily an operating segment or part of an operating segment; for example, corporate headquarters or certain functional departments may not be part of an operating segment. The entity should evaluate the guidance in paragraph [280-10-50-4](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-4) and the definition of an operating segment when identifying its operating segment (or segments) and determining whether that operating segment (or segments) constitutes all or part of the consolidated entity. For example, when a public entity has a single operating segment that constitutes part, but not all, of the consolidated entity, the chief operating decision maker may regularly review the operating results and performance of the operating segment differently than how management assesses the performance of the consolidated entity. Alternatively, when the single operating segment constitutes all of the consolidated entity, the chief operating decision maker may regularly review the entity-wide operating results and performance. ##### [280-10-55-15E](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15E) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:414b83ad2e89ebe288f559994a6b840eadc772a5b9b9c3d24c42e6f88edfb8dc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity that discloses a single reportable segment should identify the measure or measures (in accordance with paragraph [280-10-50-28A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28A)) of a segment’s profit or loss that the chief operating decision maker uses in assessing segment performance and deciding how to allocate resources, which may include a profit or loss measure that is not presented on the public entity’s consolidated income statement. For example, the chief operating decision maker of a single reportable segment entity may use both net income and earnings before interest, taxes, depreciation, and amortization as the measures of profit or loss for purposes of assessing segment performance and deciding how to allocate resources. However, earnings before interest, taxes, depreciation, and amortization is not presented on the public entity’s consolidated income statement. ##### [280-10-55-15F](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15F) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:f212f28d302d71731c57b4be7bda303099aff0882c2e47ae02f76361dd1e2fd8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When the chief operating decision maker of a single reportable segment entity uses more than one measure of a segment’s profit or loss in assessing segment performance and deciding how to allocate resources, at least one of the reported segment profit or loss measures should be that which management believes is determined in accordance with the measurement principles most consistent with those used in measuring the corresponding amounts in a public entity’s consolidated financial statements and reconciled in accordance with paragraphs [280-10-50-30(b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-30) and [280-10-50-32(f)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-32). A single reportable segment entity also may report additional performance measures that are used by the chief operating decision maker in assessing segment performance and deciding how to allocate resources in accordance with paragraphs [280-10-50-28A through 50-28B](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28A) . ##### [280-10-55-15G](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-15G) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:af676ed3d5b6db2bbea05d7aa91ace3f8ac370d52fa16477942fa2a8296027f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The chief operating decision maker may be regularly provided with segment expense categories and amounts for one segment and no segment expense categories and amounts for another segment. Alternatively, the chief operating decision maker may not be regularly provided with expense information for any of a public entity’s segments. Paragraphs [280-10-50-26A through 50-26C](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A) apply to each reportable segment. When no significant expense categories and amounts are disclosed for a reportable segment, a public entity should report an amount and a description of the composition of other segment items in accordance with paragraph [280-10-50-26B](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26B) and describe the expense information that the chief operating decision maker uses to manage the operations of that segment in accordance with paragraph [280-10-50-26C](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26C). For example, when no significant expenses are disclosed for a reportable segment, the public entity may disclose that the chief operating decision maker is regularly provided with only budgeted or forecasted expense information for that segment or uses consolidated expense information. The explanation of the expense information that the chief operating decision maker uses to manage operations is not required when significant expense categories and amounts are disclosed for a reportable segment. ##### [280-10-55-16](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-16) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:4f8ccae2817c2b72a9883154b859f1d084de6bbb47db158cb92628e7c9398ebd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Interim information is intended to be an update of the information that was presented in the most recent annual financial statements. Therefore, in the absence of a change in the structure of a public entity's internal organization during an interim period that would cause the composition of its reportable segments to change, generally, a public entity need not apply the quantitative tests in each interim period. However, if facts and circumstances change that would suggest that application of the quantitative tests in an interim period would reveal a reportable segment that was previously not reportable, and management expects that the segment will continue to be of significance, the segment should be disclosed as a new, separate reportable segment. This conclusion is consistent with the basic principle of interim financial reporting in paragraph [270-10-45-2](https://asc.understandingaccounting.org/asc/270/10/#270-10-45-2). ##### [280-10-55-17](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-17) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:f55341140838daa4aaefc1b9d793bf4fd9258300308fa461b40f1ed1e1b78a11 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Recasting of prior-period information to conform to current-period presentation is required (if practicable) when there has been a change in the composition of the segments resulting from changes in the structure of an entity's internal organization or when there has been a change in the segment expense information that is regularly provided to the chief operating decision maker in a manner that causes the identification of significant segment expenses to change. However, recasting of prior-period segment information for a change in measurement methods used to determine reported segment profit or loss is not required by this Subtopic. ##### [280-10-55-17A](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-17A) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:650783e67daba721d16eaab8fb4ac9b98228abada297a8c31e9456bfd3d7784d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A public entity may change the segment information that is regularly provided to the chief operating decision maker in a manner that causes the identification of segment expense categories to change when applying paragraph [280-10-50-26A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A). For example, in the current period, the information regularly provided to the chief operating decision maker is changed to specify an amount for research and development expense by segment that is included in reported segment profit or loss. That information was not regularly provided to the chief operating decision maker in prior periods. Research and development expense by segment should be disclosed in the current period in accordance with paragraph [280-10-50-26A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A), if significant. The public entity also is required to recast the prior-period segment expense information to conform to current-period presentation unless it is impracticable to do so. If it is impracticable to do so, the public entity should disclose the information described in paragraph [280-10-50-35](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-35). ##### [280-10-55-18](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-18) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:3c56141d3de65780d6c90ca3485747011a20b39739ace8f65fd8e27a421f8548 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [280-10-50-36](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-36) explains that although recasting is not required to reflect a change in measurement of segment profit or loss, it would be preferable to show all segment information on a comparable basis to the extent it is practicable to do so. If prior-period information is not recast, paragraph [280-10-50-29(d)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29) nonetheless requires disclosure of the nature of any changes from prior periods in the measurement methods used to determine reported segment profit or loss, including significant changes from prior periods to the measurement methods of expenses, the method for allocating expenses to a segment, or changes in the methods for allocating centrally incurred expenses, and the effect, if any, of those changes on the measure of segment profit or loss. ##### [280-10-55-19](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-19) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:a042b5d698b6a747582894bd517ad814022473994075c400befde4585615aa4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Segment information for prior periods for disposal of a component that was previously disclosed as a reportable segment is not required to be recast. However, if the income statement and balance sheet information for the discontinued component have been reclassified in comparative financial statements, the segment information for the discontinued component need not be provided for those periods. Paragraph [280-10-55-7](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-7) addresses disclosure requirements if a component of a public entity that is reported as a discontinued operation is a reportable segment. ##### [280-10-55-20](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-20) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:7c26f1600d52a924aba55e18077d2185f5f704d04831cf33ee57871032f15129 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [280-10-50-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-41) provides requirements for entity-wide disclosure of certain information by geographic areas. If revenues attributed to or assets located in an individual foreign country are material, such amounts are required to be disclosed. ##### [280-10-55-21](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-21) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:e4f2051451ff0164ea369e41572a4d4a6132f9d4b845031b60fa0b9ddccb73e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Unlike other provisions of this Subtopic, in which segment information is disclosed on a management approach basis and, therefore, disclosure of certain items is not required if such amounts are not reviewed by or not included in measures that are reviewed by the chief operating decision maker, supplemental geographic disclosures should be disclosed in accordance with paragraph [280-10-50-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-41). ##### [280-10-55-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-22) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:9168973df34cbfba7681bbbb555beda5e25d123975cb57ae2481733137392e31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [280-10-50-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-41) requires disclosure of revenues from external customers attributed to all foreign countries in total from which the public entity derives revenues and separate disclosure of revenues from external customers attributed to an individual foreign country if material. In determining the revenues attributed to foreign countries, a public entity may allocate revenues from external customers to geographic areas in whatever way it chooses (for example, by selling location, customer location, or the location to which the product is transported, which may differ from the location of the customer), as long as that method is reasonable, consistently applied, and disclosed. ##### [280-10-55-23](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-23) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:94f612ca4f270af1caffdb45247a6d0b7c2a3f35b338e78b9cefb757965f5947 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not define what is intended to be included in long-lived assets. In addition, the provisions of this Subtopic allow for flexibility and judgment by the preparer. However, the purpose of the entity-wide disclosures is to provide information about risks and uncertainties in certain geographic areas. One of the reasons for requiring disclosure of long-lived assets in geographic areas as opposed to total assets is that long-lived assets are potentially at greater risk because they are difficult to move and are relatively illiquid. _Long-lived assets_, as that phrase is used in paragraph [280-10-50-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-41), implies hard assets that cannot be readily removed, which would exclude intangibles. ##### [280-10-55-24](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-24) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:f67519a1d8ae0bae2a64392c492f9fa9b0dce20f0cd339d9d238daebb954bca4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The geographic information specified by paragraph [280-10-50-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-41) is required, if material, by country. That paragraph also states, however, that a public entity may always provide, in addition to the information required by this paragraph, subtotals of geographic information about groups of countries, for example, the European Monetary Union. ##### [280-10-55-25](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-25) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:6e49cb2eeba3161595a24e1cad2cadad069c92f3b40b436e82b06464eff61f02 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. With regard to reporting geographic information as discussed in paragraph [280-10-50-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-41), the degree of interrelationship between the United States and Puerto Rico (as well as non-self-governing U.S. territories such as the Virgin Islands and American Samoa) is such that Puerto Rican operations of U.S. public entities shall be considered domestic operations. Factors such as proximity, economic affinity, and similarities in business environments also indicate this classification for the Puerto Rican operations of U.S. public entities. It should be noted that this Subtopic does not prohibit additional disclosures about Puerto Rican operations that might be useful in analyzing and understanding an entity's financial statements. #### Illustrations ##### [280-10-55-26](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-26) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:76f2f498d9f8feddf2b62f52840dbd169b3a43e44aeda4f735b33ef938f65907 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following diagram illustrates how to apply the main provisions for identifying reportable operating segments as defined in this Subtopic. The diagram is a visual supplement to the written standards section. It should not be interpreted to alter any requirements of this Subtopic nor should it be considered a substitute for the requirements. ![](https://asc.understandingaccounting.org/asc-img/GUID-55BB2E10-25A2-42EB-8AC1-C1925CE16AED-low.gif) ##### [280-10-55-27](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-27) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:2e25f563c5430e7ae154338cb8db2ce32c52d60883b39125d5268a5e0ca6e89e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that an entity is organized as follows. ![](https://asc.understandingaccounting.org/asc-img/GUID-D802BCBD-FBAD-4545-8450-38B2CADA8C6C-low.gif) ##### [280-10-55-28](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-28) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:002a8e4e5983e40b0ad6f35c6fa8f01ae0873ac099825b0bc42956928612824c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example discusses the determination of reportable segments (see paragraph [280-10-50-10](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-10)) by a public entity when one of its subsidiaries is itself a public entity and includes segment information in its separate financial statements. ##### [280-10-55-29](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-29) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:244426df25510eb02ce1ec13ad0ee1c115b6b12bfb23aaa3af2b9d0685ebf47d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsidiary C is itself a public entity because it has public debt outstanding. The segment information for the separate financial statements of Subsidiary C discloses three reportable segments (Dept. Y, Dept. Z, and Division 7). ##### [280-10-55-30](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-30) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:ca7439a0fc078bfb295c90a70539ad7de1c169e0c5527bd0b7aeaea7b0080c74 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this situation it should not be automatically assumed that the reportable segments of Subsidiary C are also reportable segments within the consolidated financial statements of Public Company. Determining the number of operating segments of a public entity depends on the specific facts and circumstances and should be separately evaluated for each public entity that is required to apply this Subtopic. ##### [280-10-55-31](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-31) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:e174c56accf619da59064e3f98fa42f84c5888aa741911d6bd1121df4514bcf6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that an entity has identified six operating segments prior to applying the aggregation criteria. Segments B and D have been identified as reportable segments based on the 10 percent threshold criteria in paragraph [280-10-50-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12). The revenue from external customers (there are no intersegment transactions) for each of the six segments is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-FDAA960D-9A85-4E6A-8919-873F6C741383-low.gif) Revenue Segment A $6 Segment B 38 Segment C 4 Segment D 35 Segment E 9 Segment F 8 Consolidated external revenues $100 ##### [280-10-55-32](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-32) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:25812499171d3e10367e4606f2c2ce14501166580d1480d1a8fbc4393e8082ba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following Cases illustrate the application of the aggregation (Cases A and B) and quantitative threshold (Cases C, D, and E) criteria for identifying reportable segments. ##### [280-10-55-33](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-33) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:19d226268f2b3227e82dffb1b784e321702eb5a0a827278a739d9d98c824d162 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Segment E is below the 10 percent threshold while Segment D is above the 10 percent threshold. Assume that only a majority of the aggregation criteria is met. ##### [280-10-55-34](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-34) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:2184d4b6478b5a3c5d9ba884bf1cf237783717a2c29cb32f58830f369b7731c5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The aggregation criteria in paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) (which requires all of the specified criteria to be met) permit aggregation of identified operating segments prior to an evaluation of the significance of the identified operating segments to determine which are reportable. In other words, segments are first identified, then identified segments may be aggregated, if management so chooses, and if the aggregation criteria in that paragraph are met (at this stage all of the specified criteria must be met to be able to aggregate the identified operating segments). Next, an evaluation of the significance of the identified operating segments is performed to determine which are reportable. An operating segment is considered reportable if it meets any one of the threshold criteria. After reportable segments are identified based on the threshold criteria, paragraph [280-10-50-13](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-13) permits a public entity to aggregate segments that do not meet the quantitative thresholds (at this stage only a majority of the specified criteria must be met). Therefore, if an operating segment is not a reportable segment because it does not meet any of the 10 percent threshold criteria in paragraph [280-10-50-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12) and does not meet all of the aggregation criteria in paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) with another segment that does meet at least one of the 10 percent threshold criteria, it can only be aggregated with segments that do not meet the 10 percent threshold criteria if a majority of the aggregation criteria are met. In this Case, when only a majority of the criteria is met, Segment E could be aggregated with one or more of Segments A, C, or F but could not be aggregated with Segments B or D. When all of the criteria are met, any segments may be aggregated. ##### [280-10-55-35](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-35) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:9194f035ab833b773b30de221434388078906eb5d5fde9e57128ae1db4ebe82c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that Segments A and B meet all of the five criteria for aggregation and have similar economic characteristics; however, this year certain economic performance measures differ. For example, gross margins differ slightly and sales of the segments, which typically move in tandem, trended slightly differently the current year. Those differences were due to inventory problems caused by the entity's suppliers, and it is expected that the margins and sales trends of Segments A and B will again be similar next year. ##### [280-10-55-36](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-36) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:abe140b7eb02008f56759fb85b6ef9ac5a1a563207500f6b22e08113cb33476b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Even though economic performance measures differ, under this fact pattern Segment A may be aggregated with Segment B for current-year segment disclosures. Paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11) states that operating segments are considered to be similar if they can be expected to have essentially the same future prospects. Paragraph [280-10-55-7A](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-7A) explains that the similarity of the economic characteristics should be evaluated based on future prospects and not necessarily on the current indicators only. ##### [280-10-55-37](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-37) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:a5731e62bbab8ba939d6767927ce08a23c1b34614f7f02737a4fcc00877b247b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [280-10-55-38](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-38) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:fc15151b6aaa1e7a9e5cdbd0f82f6d2f3f25a4d424820529ca929ef46f0ee0ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [280-10-55-39](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-39) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:dd606fbe71575450712800620e4610901fd63a33e809015bc327de6bbc9a7367 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The intent of the threshold criterion of paragraph [280-10-50-12(b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12) is to require an evaluation of the magnitude of each segment profit or loss compared with a combined reported profit and loss of all operating segments, assuming profit or loss is determined on a consistent basis. That combined measure of all segment profits and losses should approximate (absent any reconciling items) the consolidated amount. ##### [280-10-55-40](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-40) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:62712519066ea52e4cfa8da9b8a5b8121d4884732b3efc0e1c4a0f5f458036ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the event that segments are evaluated based on different measures of segment profit or loss, the threshold criterion of paragraph [280-10-50-12(b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12) should be applied to a consistent measure of segment profit or loss that is determined for internal reporting purposes for each segment, whether or not that measure is consistently used by the chief operating decision maker for purposes of evaluating segment performance. For example, assume that the measure of segment profit or loss used by the chief operating decision maker is a different measure for each segment (for example, if the chief operating decision maker uses net income for purposes of evaluating the performance of Segments A and F but uses operating income for purposes of evaluating the performance of Segments B, C, D, and E). In this Case, the 10 percent of segment profit thresholds should be based on either operating income or net income of the segments. This would not affect the requirement in paragraph [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) to disclose the actual measure of segment profit or loss that is used by the chief operating decision maker for purposes of evaluating each reportable segment (that is, the amounts reported for segment profit or loss would be net income for Segments A and F and operating income for Segments B, C, D, and E) if the public entity discloses only one measure of a segment’s profit or loss. This also would not affect the requirement in paragraph [280-10-50-28A](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-28A) if the public entity discloses more than one measure of a segment’s profit or loss. ##### [280-10-55-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-41) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:ca0ece69219c9a701325da8de3d965d178dd6d704ad188224f8e223b84914f79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because total external revenues of the segments identified as reportable in paragraph [280-10-55-31](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-31) only constitute 73 percent of consolidated external revenues (38 percent + 35 percent), an additional segment must be identified for reporting. Segment E is the next largest segment by percentage of external revenues. However, it is not necessarily required to be identified as a reportable segment in order to meet the 75 percent revenue test. ##### [280-10-55-42](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-42) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:ac6039b80ef725750e7632a4fb7344d9187e764f2af96f539118aa518e08adb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [280-10-50-14](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-14) states that additional operating segments need to be identified as reportable segments (even if they do not meet the criteria in paragraph [280-10-50-12](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-12)) until at least 75 percent of total consolidated revenue is included in reportable segments. Although in many instances it may be most logical that the next largest segment (in terms of revenues) be identified, paragraph [280-10-50-14](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-14) does not require that the additional segment or segments identified to satisfy this requirement be the next largest by any parameter. Therefore, in this Case, Segment A, C, E, or F may be identified as a reportable segment. ##### [280-10-55-43](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-43) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:919ac5220e29dd59af54a17b6590c03403b7fe4278e03d685259ee6c0b5d4437 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assume that operating income (loss) of each of the six segments is as follows. - ![](https://asc.understandingaccounting.org/asc-img/GUID-3409C17D-5E72-44DC-B233-C5C850E0AF4F-low.gif) Operating Income (Loss) Segment A $1 Segment B (5) Segment C 2 Segment D 9 Segment E 9 Segment F (1) Consolidated income $15 - Assume that based on the above information (and an evaluation of revenues and assets) Segments A and C do not meet any of the quantitative threshold criteria. The public entity chooses to apply the aggregation criteria of paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11). Segments B and E meet all of the aggregation criteria and the public entity aggregates them into a single operating segment. When the quantitative thresholds are then evaluated, Segment C (which previously did not meet any of the quantitative thresholds) now meets the 10 percent of segment profit or loss criterion. ##### [280-10-55-44](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-44) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:44a1b2ae8b7671a2ec78ec48e8442ec9975e7fa46b9d53150f78af45a7c89dc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Threshold calculations based on the above assumptions are as follows. - - ![](https://asc.understandingaccounting.org/asc-img/GUID-6ABE2173-8101-43AD-B494-D92B251AE567-low.gif) Prior to Aggregation Subsequent to Aggregation Combined reported profits 21.0 16.0 Combined reported losses (6.0) (1.0) Greater absolute amount 21.0 16.0 10 percent threshold 2.1 1.6 ##### [280-10-55-45](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-45) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:73711d7a223ed41d50e4cdc5cd21e24d9a962b349e437e09092d8199c5da9046 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Segment C, which previously did not meet the quantitative thresholds but subsequent to the first level of aggregation meets one of the quantitative thresholds, would be considered a reportable segment. This Subtopic provides the order of the steps that should be performed for purposes of identifying reportable segments. That process is also diagrammed in paragraph [280-10-55-26](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-26) and further explained in Example 2, Case A (see paragraphs [280-10-55-33 through 55-34](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-33) ). This Subtopic requires that segments first be identified; then identified segments may be aggregated into a single segment; and then identified segments (as revised for aggregation, if applicable) are measured against the quantitative thresholds to determine if they are reportable. The fact that one segment did not meet the quantitative thresholds prior to the aggregation of other segments, in accordance with paragraph [280-10-50-11](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-11), does not preclude it from being considered a reportable segment subsequent to that aggregation. ##### [280-10-55-46](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-46) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:721b3a9466c28ebf74879b75081f54d87a679a4faa97e008780e7e2989cb4ce0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Following are specific illustrations of the disclosures that are required by this Subtopic. The formats in the examples are not requirements, but the information should be formatted in the most understandable manner in the specific circumstances. The following Cases are for a hypothetical public entity referred to as Diversified Company that has multiple reportable segments and chooses to disclose more than one measure of a segment’s profit or loss that are used by the chief operating decision maker in assessing segment performance and deciding how to allocate resources. ##### [280-10-55-47](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-47) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:c868b08a66b58bb73d50466c8ae6a9b4217260dea94b511c23076131ba01c8a8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is an example of the disclosure of descriptive information about a public entity's reportable segments. 1. a Description of the types of products and services from which each reportable segment derives its revenues (see paragraph [280-10-50-21(b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-21)). - Diversified Company has five reportable segments: auto parts, motor vessels, software, electronics, and finance. The auto parts segment produces replacement parts for sale to auto parts retailers. The motor vessels segment produces small motor vessels to serve the offshore oil industry and similar businesses. The software segment produces application software for sale to computer manufacturers and retailers. The electronics segment produces integrated circuits and related products for sale to computer manufacturers. The finance segment is responsible for portions of the company's financial operations including financing customer purchases of products from other segments and real estate lending operations in several states. 2. b Measures of segment profit or loss and segment assets (see paragraph [280-10-50-29](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29)). - The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that pension expense for each segment is recognized and measured on the basis of cash payments to the pension plan. Diversified Company evaluates performance for all of its reportable segments except the finance segment based on both segment gross profit and profit or loss from operations before interest and income taxes. The finance segment’s performance is evaluated based on pretax profit or loss. 3. bb How the chief operating decision maker uses the reported measures of the segment’s profit or loss (see paragraph [280-10-50-29(f)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29)). - For the auto parts, motor vessels, software, and electronics segments, the chief operating decision maker uses both segment gross profit and segment profit or loss from operations before interest and income taxes to allocate resources (including employees, property, and financial or capital resources) for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments. The chief operating decision maker also uses segment gross profit for evaluating product pricing and segment profit or loss from operations before interest and income taxes to assess the performance for each segment by comparing the results and return on assets of each segment with one another and in the compensation of certain employees. - For the finance segment, the chief operating decision maker uses segment pretax profit or loss to allocate resources (including employees, financial, or capital resources) to that segment in the annual budget and forecasting process and uses that measure as a basis for evaluating lending terms for customer loans. The chief operating decision maker also uses segment pretax profit or loss to assess the performance of the finance segment by monitoring the margin between interest revenue and interest expense. 4. c Diversified Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. 5. d Factors that management used to identify the public entity's reportable segments (see paragraph [280-10-50-21(a)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-21)). - Diversified Company's reportable segments are strategic business units that offer different products and services. They are managed separately because each business requires different technology and marketing strategies. Most of the businesses were acquired as a unit, and the management at the time of the acquisition was retained. 6. e The title and position of the individual or the group identified as the chief operating decision maker (see paragraph [280-10-50-21(c)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-21)). - Diversified Company’s chief operating decision maker is the chief executive officer. ##### [280-10-55-48](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-48) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:9fafb2f8b13c52fd89ba8223ae275994981c3b66fb3d92aba5b10e0dfa7bff95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following tables illustrate a format for presenting information about reported segment revenue, measures of a segment’s profit or loss, significant segment expenses, and measure of a segment's assets (see paragraphs [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22), [280-10-50-25](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-25), and [280-10-50-26A through 50-26C](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-26A) ) for the current reporting period. The tables do not illustrate comparative period disclosures. Diversified Company does not allocate income taxes or unusual items to segments. In addition, not all segments have significant noncash items other than depreciation and amortization in reported profit or loss. The amounts in this Example are assumed to be the amounts in management’s reports that are regularly provided to the chief operating decision maker, including interest revenue and interest expense. The following tables also illustrate a format for presenting the reconciliations of reportable segment revenues and measures of profit or loss to Diversified Company’s consolidated totals (see paragraph [280-10-50-30(a) through (b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-30)). - ![](https://asc.understandingaccounting.org/asc-img/GUID-0E38CBEC-49B4-4065-9822-552091C07258-low.gif) Auto Parts Motor Vessels Software Electronics Finance Total Revenues from external customers " $3,000 " " $5,000 " " $9,500 " " $12,000 " " $5,000 " (a) " $34,500 " Intersegment revenues - - " 3,000 " " 1,500 " - " 4,500 " " 3,000 " " 5,000 " " 12,500 " " 13,500 " " 5,000 " " 39,000 " Reconciliation of revenue Other revenues " 1,000 " (b) Elimination of intersegment revenues " (4,500)" Total consolidated revenues " $35,500 " \[Content moved from the illustration in paragraph 280-10-55-49\] Less: (c) Cost of revenue " 1,700 " " 3,100 " " 2,000 " " 6,800 " - Segment gross profit " 1,300 " " 1,900 " " 10,500 " " 6,700 " - (d) " $20,400 " Less: (c) Research and development expense - - " 3,300 " - - Nonmanufacturing payroll expense (e) 500 900 " 2,600 " " 2,700 " 750 Professional services expense - - " 1,700 " 500 800 Interest expense (finance segment) - - - - " 3,000 " Other segment items (f) 700 " 1,130 " " 2,300 " " 1,600 " (50) Segment profit/(loss) 100 (130) 600 " 1,900 " 500 " $2,970 " Reconciliation of profit or loss (segment profit/(loss)) Other profit or loss 100 (b) "Interest income/(expense), net (excluding finance segment)" " 1,125 " (g) Elimination of intersegment profits (500) Unallocated amounts: Litigation settlement received 500 Other corporate expenses (750) Adjustment to pension expense in consolidation (250) Income before income taxes " $3,195 " Reconciliation of profit or loss (segment gross profit) Total segment gross profit " $20,400 " "Segment operating expenses, net (excluding finance segment)" " (17,930)" (h) Segment profit (finance segment) 500 Other profit or loss 100 (b) "Interest income/(expense), net (excluding finance segment)" " 1,125 " (g) Elimination of intersegment profits (500) Unallocated amounts: Litigation settlement received 500 Other corporate expenses (750) Adjustment to pension expense in consolidation (250) Income before income taxes " $3,195 " \[Content amended and moved from the illustration in paragraph 280-10-55-49\] (a) The revenue from external customers for the finance segment relates to interest and noninterest income. (b) "Revenue and profit or loss from segments below the quantitative thresholds are attributable to four operating segments of Diversified Company. Those segments include a small real estate business, an electronics equipment rental business, a software consulting practice, and a warehouse leasing operation. None of those segments has ever met any of the quantitative thresholds for determining reportable segments." (c) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown. (d) "For the finance segment, the chief operating decision maker uses only pretax profit or loss as the measure to allocate resources and assess segment performance. As a result, segment gross profit is not reported for the finance segment. " (e) The nonmanufacturing payroll expense does not include amounts capitalized on the balance sheet or included within other expense categories. (f) "Other segment items for each reportable segment includes: Auto parts—maintenance, professional services expense, and repairs expense and certain overhead expenses. Motor vessels—marketing expense, professional services expense, occupancy expense, and certain overhead expenses. Software—depreciation and amortization expense, travel expense, office supplies expense, and certain overhead expenses. Electronics—depreciation and amortization expense, marketing expense, occupancy expense, and certain overhead expenses. Finance—depreciation and amortization expense, property tax expense, certain overhead expenses, and other gains or losses." (g) "Interest income/(expense), net (excluding finance segment) of $1,125 comprises (i) consolidated total interest revenue (excluding finance segment) of $3,825 and (ii) consolidated total interest expense (excluding finance segment) of $2,700." (h) "Segment operating expenses, net (excluding finance segment) of $17,930 includes research and development expense, nonmanufacturing payroll expense, professional services expense, and other segment items for the auto parts, motor vessels, software, and electronics segments. " - ![](https://asc.understandingaccounting.org/asc-img/GUID-3EA95A28-5F76-4D3C-AB14-0FB85D5CFA87-low.gif) ##### [280-10-55-49](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-49) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:87cbc477d9a64545528d01695e45ca912841a9ec0ad289bdbf24a9d5d230648f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is an example of reconciliations of reportable segment assets and other significant items to the public entity's consolidated totals (see paragraph [280-10-50-30(c) through (d)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-30)). The public entity's financial statements are assumed not to include discontinued operations. - ![](https://asc.understandingaccounting.org/asc-img/GUID-508DEB80-A89F-4720-A186-303DF86FFD42-low.gif) Assets Total assets for reportable segments " $79,000 " Other assets " 2,000 " (a) Elimination of receivables from corporate headquarters " (1,000)" Goodwill not allocated to segments " 4,000 " Other unallocated amounts " 1,000 " Consolidated total " $85,000 " (a) Assets from segments below the quantitative thresholds are attributable to four operating segments of Diversified Company. - ![](https://asc.understandingaccounting.org/asc-img/GUID-2AC1BB2B-A62F-4B1D-B4CA-59E64B644277-low.gif) Other Significant Items Segment Totals Adjustments Consolidated Totals Interest revenue " $3,750 " $75 " $3,825 " Interest expense " 2,750 " (50) " 2,700 " Net interest revenue (finance segment only) " 1,000 " - " 1,000 " Expenditures for assets " 2,900 " " 1,000 " " 3,900 " Depreciation and amortization " 2,950 " - " 2,950 " Cost in excess of billing on long-term contracts 200 - 200 ##### [280-10-55-50](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-50) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:5a4b1148b238052ed4117731a88618d0a6b45b3ef91eaaacd6b5bf3fb6a7b703 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The reconciling item to adjust expenditures for assets is the amount of expenses incurred for the corporate headquarters building, which is not included in segment information. None of the other adjustments are significant. ##### [280-10-55-51](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-51) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:c334aca28e9042930084636fb2f918f7e29988c7fe9d272d54a7dfedcc367c4f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates the geographic information required by paragraph [280-10-50-41](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-41). Because Diversified Company's segments are based on differences in products and services, no additional disclosures of revenue information about products and services are required (see paragraph [280-10-50-40](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-40)). - ![](https://asc.understandingaccounting.org/asc-img/GUID-9DB2D1ED-88BC-4D11-B465-F3EED2D2275E-low.gif) Geographic Information Revenues (a) Long-Lived Assets United States " $19,000 " " $11,000 " Canada " 4,200 " - Taiwan " 3,400 " " 6,500 " Japan " 2,900 " " 3,500 " Other foreign countries " 6,000 " " 3,000 " Total " $31,000 " " $24,000 " (a) Revenues are attributed to countries based on location of customer. ##### [280-10-55-52](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-52) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:05148f55d7a9b7a12a876dc08a7624af08d9fb753d9e823fbcb449cc9645e0eb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is an example of the information about major customers required by paragraph [280-10-50-42](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-42). Neither the identity of the customer nor the amount of revenues for each operating segment is required. - Revenues from one customer of Diversified Company's software and electronics segments represents approximately $5,000 of the company's consolidated revenues. ##### [280-10-55-53](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-53) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:3ff2c71876d69f2fe380967304bb1bd9cd228a05b244eed40d87d4818548ec76 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is an illustration of certain disclosures that are required by this Subtopic for a public entity that has a single reportable segment. The following Cases are for a hypothetical public entity referred to as ABC Company, which has one operating segment. The illustration for ABC Company does not include the entity-wide disclosures required by paragraphs [280-10-50-39 through 50-42](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-39) . ##### [280-10-55-54](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-54) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:943296db17a3ffb7f5814d2612077a32a53dfac0d42ff79011e46766a4ec56e5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is an example of the required disclosures about a public entity’s reportable segment. 1. a Description of the types of products and services from which the reportable segment derives its revenues (see paragraph [280-10-50-21(b)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-21)). - The software segment derives revenues from customers by providing access to cloud computing applications under software-as-a-service arrangements. The most popular cloud computing application is an enterprise resource planning application used primarily by customers to manage functions such as accounting, financial management, project management, and procurement. The service term for the software arrangements is variable, with the median term being approximately five years. 2. b Measure of segment profit or loss and assets (see paragraph [280-10-50-29](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29)). - The accounting policies of the software segment are the same as those described in the summary of significant accounting policies. - The chief operating decision maker assesses performance for the software segment and decides how to allocate resources based on net income that also is reported on the income statement as consolidated net income. - The measure of segment assets is reported on the balance sheet as total consolidated assets. 3. c How the chief operating decision maker uses the reported measure of segment profit or loss (see paragraph [280-10-50-29(f)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-29)). - The chief operating decision maker uses net income to evaluate income generated from segment assets (return on assets) in deciding whether to reinvest profits into the software segment or into other parts of the entity, such as for acquisitions or to pay dividends. - Net income is used to monitor budget versus actual results. The chief operating decision maker also uses net income in competitive analysis by benchmarking to ABC Company’s competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation. 4. d ABC Company does not have intra-entity sales or transfers. 5. e Factors that management used to identify the public entity’s reportable segments (see paragraph [280-10-50-21(a)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-21)). - ABC Company has one reportable segment: software. The software segment provides cloud computing services to customers under software-as-a-service arrangements. ABC Company derives revenue primarily in North America and manages the business activities on a consolidated basis. The technology used in the customer arrangements is based on a single software platform that is deployed to and implemented by customers in a similar manner. 6. f The title and position of the individual or the group identified as the chief operating decision maker (see paragraph [280-10-50-21(c)](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-21)). - ABC Company’s chief operating decision maker is the senior executive committee that includes the chief operating officer, chief financial officer, and the chief executive officer. ##### [280-10-55-55](https://asc.understandingaccounting.org/asc/280/10/#280-10-55-55) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:55.013Z to 2026-09-09T23:22:55.013Z Record version: sha256:22ffc77876a1b093e8b17f37a9084e819699f03d30005b945557ec6212ed014b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates a format for presenting information about reported segment revenue, segment profit or loss, and significant segment expenses. The Example does not separately illustrate all of the information required by paragraphs [280-10-50-22](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-22) and [280-10-50-25](https://asc.understandingaccounting.org/asc/280/10/#280-10-50-25). - ![](https://asc.understandingaccounting.org/asc-img/GUID-9130A8CA-D6B4-4265-85D7-112A4AB5ADA0-low.gif) Software Segment Revenue " $81,800 " Less: Employee expense " 41,000 " Contractor expense " 15,000 " Occupancy and equipment expense " 8,400 " Hosting and data center expense " 1,500 " Other professional services expense 750 Customer acquisition expense 800 Other segment items (a) " 2,500 " Depreciation and amortization expense " 3,200 " Interest expense 600 Income tax expense " 2,000 " Segment net income " 6,050 " Reconciliation of profit or loss Adjustments and reconciling items - Consolidated net income " $6,050 " (a) "Other segment items included in Segment net income includes marketing expense, restructuring expense, foreign currency exchange gains and losses, and other overhead expense." Source downloaded (UTC): 2026-09-09T23:22:57.400Z to 2026-09-09T23:22:57.400Z Record version: sha256:8f455a8509ca8b04e5180d9a9cdd9210e213425b494fd3de024d1969f0affca7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/280/10/#60-relationships) SEC content: no #### Intangibles—Goodwill and Other ##### [280-10-60-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:57.400Z to 2026-09-09T23:22:57.400Z Record version: sha256:0116ca65dc75d687a9865e5ac061822f1c5039ab7895a9f01e04038b9d4e7d1e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For information to be disclosed about goodwill in each reportable segment and significant changes in the allocation of goodwill by reportable segments, see Topic 350. ##### [280-10-60-2](https://asc.understandingaccounting.org/asc/280/10/#280-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:57.400Z to 2026-09-09T23:22:57.400Z Record version: sha256:47cf64966c00c7d37a2d2cff1c2ef762a5debaaf2b22f718066f5dde6300a3c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For segment disclosures related to each impairment loss recognized related to an intangible asset, see Topic 350. #### Exit or Disposal Cost Obligations ##### [280-10-60-3](https://asc.understandingaccounting.org/asc/280/10/#280-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:57.400Z to 2026-09-09T23:22:57.400Z Record version: sha256:ea99943ecf0aa48d2df15674593422d306d81be7409ce8c226476f0aed56bd72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For segment information to be disclosed in the period in which an exit or disposal activity is initiated, see paragraph [420-10-50-1](https://asc.understandingaccounting.org/asc/420/10/#420-10-50-1). #### Airlines ##### [280-10-60-4](https://asc.understandingaccounting.org/asc/280/10/#280-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:57.400Z to 2026-09-09T23:22:57.400Z Record version: sha256:7ebb0afc2e2418265e6e21688fd1c7daac2c7315226fc6f88845fdc4c406a1c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For information about segmentation in the airline industry, see Subtopic 908-280. #### Entertainment—Casinos ##### [280-10-60-5](https://asc.understandingaccounting.org/asc/280/10/#280-10-60-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:57.400Z to 2026-09-09T23:22:57.400Z Record version: sha256:21273ee680cacac08f3bb5eb3e08750bb532cf9dd3593e990dd02c7fbbec34e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For segment guidance in the casino industry, see Subtopic 924-280. Source downloaded (UTC): 2026-09-09T23:22:59.984Z to 2026-09-09T23:22:59.984Z Record version: sha256:fd117ace17f099817448c5701c3e7fb92ba156f463b6a1a0ddd302869032ad97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/280/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [280-10-65-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:22:59.984Z to 2026-09-09T23:22:59.984Z Record version: sha256:a137e12174b1ef4d4093e600c5b16f75fa171e82470857646b9e1b0e63cc90ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph superseded on 06/30/2025 after the end of the transition period stated in Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Source downloaded (UTC): 2026-09-09T23:23:07.457Z to 2026-09-09T23:23:07.457Z Record version: sha256:98484baf0cf400eac07d4781299bf2fe0d0b561bf5234aaa39983318ea46ea69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 280-10-S50: SEC 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/280/10/#sec-50-disclosure) SEC content: yes #### Segment Disclosures ##### [280-10-S50-1](https://asc.understandingaccounting.org/asc/280/10/#280-10-S50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:23:07.457Z to 2026-09-09T23:23:07.457Z Record version: sha256:cfbfa7e8c22b607eaf0680cc60084c2978fc1537a1fba99433231ec50f8551a6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [220-10-S99-1(e)](https://asc.understandingaccounting.org/asc/220/10/#220-10-S99-1), Regulation S-X Rule 3-03(e), for requirements to provide segment disclosures.