FAS 131 requires use of quantitative thresholds to establish a measure of profitability.

Question

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FAS 131 (ASC 280, Segment Reporting) requires that an entity report financial and descriptive information about its reportable segments, but it does not specifically require the use of quantitative thresholds to establish a measure of profitability. It focuses on the way that financial information is reported to the chief operating decision maker for making decisions about allocating resources and assessing performance.

FAS 131 Requires Use of Quantitative Thresholds to Establish a Measure