The Bout, Pets Company’s disclosures for the current year includes information on the following five operating segments: pet Supplies, Veterinary, Grooming, Lodging and Training. In this memorandum we discuss the FASB appropriate operating segments disclosures that company should adopt to present the “True and Fair View” of the financial statements. Moreover, according to the given information, the company is currently registered as a public listed company in 2015 and before registration the Company’s management do not provide operating segment disclosures in prior Company’s financial statements. According to FASB codification (280-10-15-3) non-public entities are exempt from operating segments disclosures.
However, the company registered as public entity in 2015, therefore company should provide operating segment disclosures in financial information …show more content…
Moreover, according to my point of view it will be more valuable for the company to disclose profit as well as disclose the decreasing trend of assets in case of lodging and training to endorse transparency. Moreover, management of the company can select to disclose the segments that do not meet the thresholds according to the requirement of ASC 280-10-50-12 if he considers that the segment information about the segment would be useful to the stakeholders of the company or shareholders of the financial statements. Hence, this new operating segment is estimated to be extremely productive and disclosures including in the segment will have a Company’s positive impact on users of the financial statements. One thing must considered if the total revenue of five segments included in the draft is more than 75 percent of the total revenues than it is reported or disclosure made according to requirement of (ASC
However, the company registered as public entity in 2015, therefore company should provide operating segment disclosures in financial information …show more content…
Moreover, according to my point of view it will be more valuable for the company to disclose profit as well as disclose the decreasing trend of assets in case of lodging and training to endorse transparency. Moreover, management of the company can select to disclose the segments that do not meet the thresholds according to the requirement of ASC 280-10-50-12 if he considers that the segment information about the segment would be useful to the stakeholders of the company or shareholders of the financial statements. Hence, this new operating segment is estimated to be extremely productive and disclosures including in the segment will have a Company’s positive impact on users of the financial statements. One thing must considered if the total revenue of five segments included in the draft is more than 75 percent of the total revenues than it is reported or disclosure made according to requirement of (ASC