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 a threshold of 10 percent of total revenues is mandated.
D) A local, state, or foreign government can be considered a major customer.

Question

Quizplus · Accepted Answer

ASC 280 does not mandate a specific threshold percentage for disclosing information about major customers. Rather, it requires entities to disclose information about any customer that satisfies certain quantitative or qualitative criteria, regardless of the percentage of revenue they represent. Therefore, option C is not true. Options A, B, and D are all true statements about disclosures required by ASC 280.

ASC 280 Requires Certain Disclosures About Major Customers