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US GAAP vs. IFRS: the basics, March 2010 - Segment reporting - Ernst & Young - United States

US GAAP vs. IFRS: the basics, March 2010

Segment reporting

Similarities

The requirements for segment reporting under ASC 280 Segment Reporting (formerly FAS 131) and IFRS 8 Operating Segments are both applicable to entities with public reporting requirements and are based on a “management approach” in identifying the reportable segments. These two standards are largely converged, and only limited differences exist between the two GAAPs.

Significant differences


US GAAPIFRS
Determination of segmentsEntities with a “matrix” form of organization (that is, 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.

Convergence

No further convergence is planned at this time.

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