‘Doable’ Segment Accounting Revamp to Take Effect in 2025

July 26, 2023, 8:32 PM UTC

After five years of debate, public companies will have to disclose new details about expenses in their business units, the US accounting standard-setter’s biggest change to segment accounting in more than a quarter of a century.

Businesses will have to disclose “significant” expenses such as cost of goods sold or advertising expense for each operating segment in every reporting period—not just annually. Businesses with only one operating segment also must comply, the Financial Accounting Standards Board voted Wednesday.

The final update is scheduled for publication this fall, a FASB spokesperson said. Expect to see the first new disclosures in 2025, ...

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