Segment Reporting Highlights for Technology Companies - ASU 2023-07

This publication is intended to be a reminder as you prepare the required disclosures according to ASU 2023-07, with focus on technology companies.
A survey recently conducted by KPMG of our technology industry clients in the US indicated the following:

• 55% of the respondents reported that they made or plan to make changes to the CODM package as part of the revisiting the information provided to the CODM in connection with the planned adoption of ASU 2023-07.
• 25% of the respondents said they have multiple operating segments that are aggregated into one or more operating segments.
• 55% of the respondents said they currently disclose a single reportable segment in notes to the financial statements.
• Employee and Technology expense were the two most commonly identified significant segment expense categories, among other.
• 80% of the participants reported that they plan to disclose one measure of segment profit or loss, predominantly net or operating income/loss.

Our team is prepared to assist and advise in any issues that rise during these times, we invite you to contact us.