Segment reporting under ASC 280

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The staff questioned multiple registrants on whether their segment disclosures adequately explain how the chief operating decision maker (CODM) uses the reported measure of segment profit or loss to assess performance and allocate resources, as required by ASC 280-10-50-29(f). Companies were asked to expand disclosures with specific guidance references (ASC 280-10-55-47(bb) example). This reflects heightened staff scrutiny of segment disclosure quality under the 2023 ASU 2023-07 amendments.

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