ASB Rescinds Segment Information Standard

By Anthony J. Mancuso, CPA

The Auditing Standards Board recently voted to rescind Statement on Auditing Standards No. 21, Segment Information, effective for audits of financial statements to which Statement of Financial Accounting Standards No. 131, Disclosures About Segments of an Enterprise and Related Information, has been applied.

In June 1997, the FASB issued Statement No. 131, which superseded FASB Statement No. 14, Financial Reporting for Segments of a Business Enterprise. SAS No. 21, issued in December 1997, provided guidance on audit issues related to FASB Statement No. 14. With the replacement of FASB No. 14, SAS No. 21 is no longer appropriate for audits of financial statements of entities implementing Statement No. 131.

Statement No. 131 became effective for fiscal years beginning after December 15, 1997, with earlier application encouraged. *