Search within this section
Select a section below and enter your search term, or to search all click IFRS and US GAAP: similarities and differences
Favorited Content
15.27 Segment reporting
Publication date: 28 Feb 2022 (updated 15 Mar 2024)
us IFRS & US GAAP guide
Differences exist between US GAAP and IFRS related to the determination of operating segments and the disclosure of reportable segments. A principles-based approach to the determination of operating segments in a matrix-style organizational structure could result in entities disclosing different operating segments. Based on a reporting entity’s facts and circumstances, additional disclosures may be required under IFRS compared to US GAAP.
US GAAP | IFRS |
Entities that utilize a matrix form of organizational structure are required to determine their operating segments on the basis of products or services offered, rather than geography or other metrics.
| Entities that utilize a matrix form of organizational structure are required to determine their operating segments by reference to the core principle (i.e., an entity shall disclose information to enable users of its financial statements to evaluate the nature and financial effects of the business activities in which it engages and the economic environments in which it operates).
|
Disclosure of liabilities for each reportable segment is not required under US GAAP, even if the information is regularly reviewed by the chief operating decision maker (CODM).
| Reporting entities are required to report total liabilities for each reportable segment if such information is regularly provided to the CODM.
|
While reporting entities are required to disclose the factors used to identify its reportable segments, and whether two or more operating segments have been aggregated into a reportable segment, there is no requirement to disclose the judgments made in applying the aggregation criteria.
| Reporting entities are required to disclose the factors used to identify its reportable segments, and whether two or more operating segments have been aggregated into a reportable segment. If two or more operating segments have been aggregated, reporting entities are required to disclose the judgments made in applying the aggregation criteria, specifically (1) a brief description of the operating segments that have been aggregated and (2) the economic indicators that have been assessed in determining that the aggregated operating segments have similar economic characteristics.
|
Upon adoption of ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, reporting entities are required to disclose significant segment expenses and other segment items for each reportable segment in both annual and interim periods. See FSP 25.7.5.1 and FSP 25.7.5.2.
| There are no specific disclosure requirements for significant segment expenses and other segment items under IFRS.
|
Upon adoption of ASU 2023-07, reporting entities are required to disclose the title and position of the individual or the name of the group identified as the CODM.
| There are no requirements to disclose the title and position of the individual or the name of the group identified as the CODM under IFRS.
|
Upon adoption of ASU 2023-07, reporting entities are required to disclose how the CODM uses each measure of segment profit or loss to assess performance and allocate resources to the segment.
| There are no requirements to disclose how the CODM uses each measure of segment profit or loss to assess performance and allocate resources to the segment under IFRS.
|
Link copied
