FAR Segment Reporting · Updated November 2026
Segment Reporting: What Makes a Segment Reportable?
Start with how management actually runs and reviews the business internally.
Operating segment
An operating segment generally has business activities that can earn revenues and incur expenses, results reviewed by the CODM, and discrete financial information available.
CODM
CODM means Chief Operating Decision Maker. It is a function, not necessarily a particular job title.
Reportable segments
Not every operating segment must be separately reported. Quantitative tests and aggregation rules determine reportability.
Management approach
How senior decision makers review the business can drive external segment presentation.
The takeaway
Identify operating segments using internal decision-making structure, then apply reporting thresholds.
Related Summit guides
FAQ
Is the CODM always the CEO?
No.
Does every operating segment become reportable?
No.
Can operating segments be aggregated?
Yes, when applicable criteria are met.