Tentative Board decisions are provided for those interested in following the Board’s deliberations. All of the reported decisions are tentative and may be changed at future Board meetings.

Wednesday, December 8, 2021 FASB Board Meeting

Segment reporting. The Board continued its deliberations of a principle-based disclosure requirement to report the significant segment expense categories and amounts that are both (1) regularly provided to the chief operating decision maker (CODM) and (2) included in the reported measure of segment profit or loss.

The Board made the following decisions.

Multiple Segment Profit or Loss Measures

The Board discussed whether to clarify which of a segment’s profit or loss measures the principle applies to when multiple measures are reported. The Board decided that the principle should apply to all reported measures of a segment’s profit or loss.


The Board discussed transition and decided that:

  1. The proposed amendments should be applied retrospectively for each comparative period that an income statement is presented.
  2. When applying the amendments retrospectively, a public entity should first apply the principle to identify the significant segment expense categories and amounts for the current period presented (that is, the period of adoption). The entity should then disclose the comparative period amounts for those same categories.

The Board also decided that a public entity should provide a qualitative transition disclosure about certain changes to the segment expenses included in the management reports that are regularly provided to the CODM.

The Board considered whether to permit an optional transition expedient to not reconcile each significant segment expense category to its corresponding consolidated amount for the comparative periods presented under retrospective transition. The Board decided not to include that expedient as part of the proposed Accounting Standards Update.

Next Steps

The Board directed the project team to prepare a staff draft of the proposed Accounting Standards Update for external review.