In establishing new rules for segment reporting, the FASB considered exempting companies from pro viding segment disclosures
Question:
In establishing new rules for segment reporting, the FASB considered exempting companies from pro¬ viding segment disclosures if such disclosure would result in competitive harm for the company. The FASB ultimately decided not to provide a competitive harm exemption to companies. Search the FASB’s Original Pronouncements using either hard copy or the Financial Accounting Research System (FARS) to complete the following requirements.
Required 1. Identify the authoritative pronouncement and paragraphs within that pronouncement that discuss the issue of competitive harm from providing segment disclosures.
2. Summarize the specific illustrations of competitive harm that the FASB received that have resulted from disclosing segment information.
3. Summarize the FASB’s reason for not granting a competitive harm exemption.
4. Explain how the possibility of competitive harm influenced the FASB’s decision regarding the dis¬ closure of research and development costs by segm LO3ent.
Step by Step Answer:
Advanced Accounting
ISBN: 9780073379456
9th Edition
Authors: Joe Ben Hoyle, Timothy S. Doupnik, Thomas F. Schaefer, Oe Ben Hoyle