SEC Warns Single-Segment Entities to Stick to Official Metrics

New segment expense disclosure rules don’t give companies leeway to report whatever profit number they want in their segment reporting footnotes, an SEC accountant said Monday.

The Securities and Exchange Commission expects companies that operate as one segment, or business unit, to use the official accounting measure of consolidated net income when they report segment profits under new accounting rules, said Carlton Tartar, associate chief accountant in the SEC’s Office of the Chief Accountant.

“This is also consistent with long-standing staff views regarding presentation of segment profit or loss for single reportable segments,” Tartar said ...