The standards established in FASB Statement No. 131, "Disclosures about Segments…," provide far less segment information to users of financial reports than was required by FASB Statement No. 14, "Financial Reporting for Segments of a Business Enterprise."

Question

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FASB Statement No. 131, "Disclosures about Segments of an Enterprise and Related Information," requires companies to report financial and descriptive information about their reportable operating segments, based on the way that the company's management internally organizes segments for making operating decisions and assessing performance. This approach, known as the "management approach," often results in more detailed and useful information for users of financial reports compared to the previously more rigid requirements of FASB Statement No. 14, which was based on a standardized industry-based segmentation.

The Standards Established In FASB Statement No