Finance & Accounting / External Reporting
Segment Reporting
The breakdown of a diversified company's revenue and profit into the operating pieces management actually runs it by, the only window outsiders get into which business lines make money.
The fork, why two teams get different numbers
ASC 280 and IFRS 8 both mandate the "management approach": segments are defined by how the chief operating decision maker reviews the business, not by product or geography per se.
In the Metric Library
- The full fork, both definitions worked all the way through
- The trap that makes the number lie, on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: FASB ASC 280 (Segment Reporting) · IFRS 8 (Operating Segments)