ASC 280 requires certain disclosures about major customers.All of the following statements about those disclosures are true with the exception of which statement?
A)The identity of the segment reporting the revenue from a significant customer must be disclosed a footnote.
B)The amount of revenue from a significant customer must be disclosed in a footnote.
C)For applying the disclosure test,there is no specific threshold (percent of total revenues)that is defined as "significant".
D)A local,state,or foreign government can be considered a major customer.

Question

Quizplus · Accepted Answer

This statement is actually false. ASC 280 provides guidance for disclosing revenue from significant customers, and it does include a specific threshold. A customer is considered significant if revenues from that customer are 10% or more of the company's total revenues. This threshold is used to determine which customers should be disclosed in the financial statements.

ASC 280 Requires Certain Disclosures About Major Customers