What types of disclosures are required for reportable operating segments?

For reportable operating segments, profit or loss details and measurements are required disclosures. This is because the purpose of segment reporting is to provide information that helps users of the financial statements understand the financial performance and operating results of an entity’s different business segments. These segments must be reported based on the way management reviews and evaluates their performance.

The requirement includes disclosing the segment profit or loss, which can include measurements of operating performance such as earnings before interest and taxes (EBIT). Such details allow stakeholders to see how resources are allocated across the segments and to assess the profitability and viability of each segment independently.

Additional disclosures surrounding segment assets and liabilities may also be necessary in certain contexts, but the key focus lies in financial performance metrics that management uses for evaluating segments. Thus, including profit or loss details in the disclosures is integral to providing a clear and comprehensive picture of the company’s overall operational performance across its segments.