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US GAAP versus IFRS - Segment reporting - EY - United States


Segment reporting

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The requirements for segment reporting under both ASC 280, Segment Reporting, and IFRS 8, Operating Segments, apply to entities with public reporting requirements and are based on a "management approach" in identifying the reportable segments. The two standards are largely converged, and only limited differences exist.

Significant differences

Determination of segmentsEntities with a "matrix" form of organization (i.e., business components are managed in more than one way and the chief operating decision maker (CODM) reviews all of the information provided) must determine segments based on products and services.All entities determine segments based on the management approach, regardless of form of organization.
Disclosure requirementsEntities are not required to disclose segment liabilities even if reported to the CODM.If regularly reported to the CODM, segment liabilities are a required disclosure.


No further convergence is planned at this time. However, the FASB is considering changes to segment disclosures in conjunction with the joint project on financial statement presentation. These changes could result in additional differences.

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