Dark
Light

Segments, taxes, SAB 74, amplify- for ultimate financial guidance!

1 min read
77 views

TLDR:

The Financial Accounting Standards Board (FASB) has published two notable Accounting Standards Updates (ASUs) that are expected to meaningfully affect public company disclosures regarding segments and taxes. ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, seeks to improve the disclosures about reportable segments, primarily by requiring additional disclosures about significant segment expenses. ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, responds to investor requests for additional transparency concerning income tax information.

Key Points:

  • ASU 2023-07 requires companies to disclose significant segment expenses, disclose “other segment items” by reportable segment, and provide all annual disclosures about reportable segments’ profit or loss and assets in interim periods.
  • ASU 2023-09 requires companies to provide a tax rate reconciliation, disclose income taxes paid disaggregated by federal, state, and foreign taxes, and disclose additional information as to the relationships between amounts reported in the statement of cash flows and those in the statement of financial position.
  • Companies that report only a single segment are also impacted by the new segment rule changes.
  • SEC Staff Accounting Bulletin 74 requires companies to discuss the potential effects of adopting recently issued accounting standards in their registration statements and reports filed with the SEC.
  • SEC Chief Accountant Paul Munter reminded companies to pay due attention to the preparation and presentation of the statement of cash flows and encouraged them to carefully consider how to best present cash and noncash information.
Previous Story

Your Daily Accounting Briefing – 2024-01-11

Next Story

Business researchers shine at national accounting conference.

Latest from News