Asked by Bryce Folsom on May 22, 2024
Verified
What two disclosure guidelines for operating segment information are designed to ensure the consistency of data reported from year to year?
Disclosure Guidelines
Regulations or standards that dictate the financial information a company must provide to stakeholders to ensure transparency and informed decision-making.
Operating Segment
A component of an enterprise, engaged in business activities from which it may earn revenues and incur expenses.
Consistency
An accounting principle that requires accounting methods and principles to be applied in the same manner from period to period unless a change is justified.
- List the required disclosures and analyses necessary for operating segment reporting according to U.S. GAAP.
Verified Answer
SB
Swasat BorahMay 28, 2024
Final Answer :
1) If an operating segment does not pass a test for current segment disclosure but was a reportable segment in the past year(s) included in the current comparative report and management deems it as having continued significance, then that segment should be disclosed currently to be comparative to prior periods.
2) If an operating segment is to be disclosed in a current year and was not separately disclosed in prior comparative years, then prior years must be restated to show that segment comparatively with the current year.
2) If an operating segment is to be disclosed in a current year and was not separately disclosed in prior comparative years, then prior years must be restated to show that segment comparatively with the current year.
Learning Objectives
- List the required disclosures and analyses necessary for operating segment reporting according to U.S. GAAP.