At a June 13 meeting on the Financial Accounting Standards Board’s (“FASB”) segment reporting project, the board gave staff members permission to proceed with their upcoming extended outreach. The extended outreach would address two alternatives:
Reorganize the process for determining reportable segments and shift the quantitative thresholds earlier in the process; and
Eliminate the aggregation criteria, making each operating segment reportable until a practical limit is achieved.
The decision to perform extended outreach focus on both alternatives occurred after board members agreed that feedback on each alternative would benefit future discussions. Board members had also considered solely focusing on the second alternative.
Also discussed was the extended outreach’s timing and materials. FASB staff members will conduct onsite visits to get detailed feedback regarding both alternatives, analyze how reportable segments will change, and identify operability concerns and inadvertent consequences of both alternatives.
Next steps for the project involve finding prospective companies and preparers to partake in the extended outreach, which is expected to start in August.