With segment reporting an ongoing area of concern for the SEC, this report reviews segment reporting comment letter trends.

With the expected adoption before the end of calendar year 2023 or Q1 2024 of a significant update to segment reporting requirements by FASB, knowing what the SEC is focusing on can help public companies stay ahead of possible areas of risk.

Among our key findings:

• There are nine main segment reporting topics that the SEC is focused on in comment letters including aggregation and use of non-GAAP measures.
• Companies should be prepared to ensure segment consistency within filings and with website postings/documents.
• Service sector companies received the highest number of segment reporting comment letters.