Improving internal control over segment reporting
Nov 01, 2017
On November 1, 2017, the Journal of Accountancy published an article on how the principles of FASB Accounting Standards Codification (ASC) Topic 280, "Segment Reporting", pave the way toward meeting financial reporting objectives.
In the 12-month period ended July 31, 2016, segment reporting ranked high as the fourth-most-common area discussed in SEC comment letters, according to a Deloitte report.
Recent SEC investigations and comment letters show the importance of appropriate design and operation of internal control in three areas:
- Identification of the chief operating decision-maker (CODM);
- Identification of operating segments; and
- Aggregation of operating segments.
Review the article on the Journal of Accountancy's website.
