What is Chief operating decision maker?
In short
The chief operating decision maker is the function, a person or a group, that allocates resources to and assesses the performance of a public company's segments. Operating segments are identified from the information this function regularly reviews.
Key takeaways
- This is called the management approach to segment reporting.
- Companies disclose the title of the chief operating decision maker and significant segment expenses regularly provided to them.
- It is often the chief executive officer or an executive committee.
Where it's tested
FAR: Public Company Reporting, Segments & Interim Reporting — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
An operating segment must be separately reported if it meets a quantitative threshold based on: