According to FASB statement No. 14, a company may be required to disclose data for one or more of the following areas in its segment reporting: operations in different industries, domestic and foreign operations, export sales, and major customers.
- Operations in Different Industries: A company may have segments operating in different industries. The company may not be required to report on its operations in different industries unless certain conditions are met.
To determine if a company must report on its operations in different industries, the company must first identify the industry segments in which it operates. A reportable segment is a significant component of a company that provides related products and services primarily to unaffiliated customers. In order to be considered a reportable segment, the segment must meet one of the three tests: the revenue test, the operating profit test, or the asset test. - Domestic and Foreign Operations: A company may have both domestic and foreign operations. In this case, the company may be required to report on these operations separately in its segment reporting.
- Export Sales: If a company has a significant amount of export sales, it may be required to report on these sales separately in its segment reporting.
- Major Customers: If a company has a few major customers that account for a significant portion of its revenue, it may be required to report on these customers separately in its segment reporting.
