Disclosure Trends From the 2024 Reporting Season
Background The global business environment continues to undergo rapid transformation. In addition to regulatory changes, shifts in the macroeconomic and global trade landscape, and geopolitical tensions, generative artificial intelligence (AI) is continuing to transform the ways companies operate. In this complex and uncertain environment, clear financial reporting remains crucial in conveying to investors how companies […]
Posted by Christine Mazor and Doug Rand, Deloitte LLP, on Friday, June 20, 2025
Editor's Note:
Christine Mazor is a partner, and Doug Rand is a managing director at Deloitte LLP. This post is based on a Deloitte memorandum by Ms. Mazor, Mr. Rand, Megan D’Alessandro, Cody Yettaw, and Sam Paolini.
Background
The global business environment continues to undergo rapid transformation. In addition to regulatory changes, shifts in the macroeconomic and global trade landscape, and geopolitical tensions, generative artificial intelligence (AI) is continuing to transform the ways companies operate. In this complex and uncertain environment, clear financial reporting remains crucial in conveying to investors how companies navigate and are affected by broader global events and trends.
We have examined how Fortune 500 companies have addressed various disclosures in their latest annual reports in light of these evolving themes. This Financial Reporting Spotlight offers insights into how companies have approached those disclosures and examines the new segment disclosures required this year. While disclosures are most meaningful when tailored to a company’s specific facts and circumstances, understanding broader trends may be informative.
New Disclosure Requirements
Reportable Segment Disclosures
ASU 2023-07 [1] added the requirement for public entities to disclose, in the segment footnote, the expense categories and amounts of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included in the segment measure(s) of profit and loss and certain other additional disclosures. The ASU became effective for all public entities for fiscal years beginning after December 15, 2023, and was adopted by calendar-year-end companies in their 2024 Form 10-K.[2]
Segment disclosures, including those on significant segment expenses, reflect how management views the business. Such disclosures are therefore based on a company’s unique facts and circumstances and will vary widely among registrants, even those in similar industries. Not surprisingly, companies have differed in both the number of significant segment expenses identified and the nature of those expenses.
