Fas30 PDF

Statement of
Financial Accounting
Standards No. 30
Note: This Statement has been completely superseded
FAS30 Status Page

FAS30 Summary
Disclosure of Information
About Major Customers
an amendment of FASB Statement No. 14
August 1979
Financial Accounting Standards Board

of the Financial Accounting Foundation
401 MERRITT 7, P.O. BOX 5116, NORWALK, CONNECTICUT 06856-5116
Copyright © 1979 by Financial Accounting Standards Board. All rights reserved. No
part of this publication may be reproduced, stored in a retrieval system, or transmitted, in
any form or by any means, electronic, mechanical, photocopying, recording, or
otherwise, without the prior written permission of the Financial Accounting Standards
Board.
Page 2
Statement of Financial Accounting Standards No. 30
Disclosure of Information about Major Customers
August 1979
CONTENTS
Paragraph
Numbers
Introduction and Background Information ................................................................... 1–5

Standards of Financial Accounting and Reporting:
Amendment to FASB Statement No. 14 .................................................................... 6
Effective Date and Transition..................................................................................... 7
Page 3
FAS 30: Disclosure of Information about Major Customers
FAS 30 Summary
Paragraph 39 of FASB Statement No. 14, "Financial Reporting for Segments of a

Business Enterprise," requires disclosure of the amount of revenue derived from sales to
domestic governmental agencies in the aggregate or to foreign governments in the aggregate
when those revenues are 10 percent or more of the enterprise's revenues. The Board was
requested to consider the usefulness of disclosing aggregate amounts and concluded that such
disclosure has limited general usefulness and should not be required. Therefore, this Statement
amends that paragraph to require disclosure of the amount of sales to an individual domestic
government or foreign government when those revenues are 10 percent or more of the
enterprise's revenues. Consequently, disclosure of sales to a governmental customer is now the
same as disclosure of sales to any other customer.
INTRODUCTION AND BACKGROUND INFORMATION

1. Paragraph 39 of FASB Statement No. 14, "Financial Reporting for Segments of a Business
Enterprise," requires disclosure of information about major customers as follows:
If 10 percent or more of the revenue of an enterprise is derived from sales to any

single customer, that fact and the amount of revenue from each such customer
shall be disclosed. (For this purpose, a group of customers under common control
shall be regarded as a single customer.) Similarly, if 10 percent or more of the
revenue of an enterprise is derived from sales to domestic government agencies in
the aggregate or to foreign governments in the aggregate, that fact and the amount
of revenue shall be disclosed. The identity of the industry segment or segments
making the sales shall be disclosed. The disclosures required by this paragraph
shall be made even if the enterprise is not required by this Statement to report
information about operations in different industries or foreign operations.
Copyright © 1979, Financial Accounting Standards Board Not for redistribution
Page 4
2. The Board has received a number of questions concerning the disclosure of revenue
derived from sales to domestic governmental agencies in the aggregate or to foreign
governments in the aggregate. The questions pertain to the usefulness of disclosing aggregate
amounts, such as aggregate revenue derived from sales to federal, state, and county agencies
when there is no apparent relationship, such as common control. Similar questions have been
asked about aggregating sales to foreign governments.
3. The purpose of the major customer disclosure requirement of FASB Statement No. 14 is to
inform financial statement users of the extent of an enterprise's reliance on a customer.
Accordingly, the Board has concluded that disclosure of revenue derived from sales to domestic
governmental agencies in the aggregate or to foreign governments in the aggregate has limited
general usefulness and should not be required. Instead, the major customer disclosure
requirements of Statement No. 14 should apply for sales to domestic governmental agencies and
foreign governments. Therefore, if 10 percent or more of the revenue of an enterprise is derived
from sales to a domestic government or a foreign government, that fact and the amount of
revenue from each such source should be disclosed.
4. An Exposure Draft of a proposed Statement on "Disclosure of Information about Major

Customers" was issued on March 29, 1979. The Board received 36 letters of comment in
response to that Exposure Draft, virtually all of which expressed agreement with the proposed
Statement.
5. The Board has concluded that it can reach an informed decision on the basis of existing
information without a public hearing and that the effective date and transition specified in
paragraph 7 are advisable in the circumstances.
STANDARDS OF FINANCIAL ACCOUNTING AND REPORTING
Amendment to FASB Statement No. 14
6. Paragraph 39 of FASB Statement No. 14 is superseded by the following:
An enterprise shall disclose information about the extent of the enterprise's reliance on its
major customers. If 10 percent or more of the revenue of an enterprise is derived from
sales to any single customer, that fact and the amount of revenue from each such
customer shall be disclosed. For this purpose, a group of entities under common control
shall be regarded as a single customer, and the federal government, a state government, a
local government (for example, a county or municipality), or a foreign government shall
each be considered as a single customer.* The identity of the customer need not be
Page 5
disclosed, but the identity of the industry segment or segments making the sales shall be
disclosed. The disclosures required by this paragraph shall be made by an enterprise
subject to this Statement [Statement No. 14] even if the enterprise operates only in one
industry or has no foreign operations.
__________
*If sales are concentrated in a particular department or agency of government, disclosure of that fact and
the amount of revenue derived from each such source is encouraged.
Effective Date and Transition
7. This Statement shall be effective for fiscal years beginning after December 15, 1979.
Earlier application is encouraged in financial statements for fiscal years beginning before
December 16, 1979. This Statement may be, but is not required to be, applied retroactively to
previously issued financial statements.
The provisions of this Statement need

not be applied to immaterial items.
This Statement was adopted by the unanimous vote of the seven members of the
Financial Accounting Standards Board:
Donald J. Kirk, Chairman

Frank E. Block
John W. March
Robert A. Morgan
David Mosso
Robert T. Sprouse
Ralph E. Walters
Page 6

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Statement of

FAS30 Status Page

an amendment of FASB Statement No. 14

Financial Accounting Standards Board

Disclosure of Information about Major Customers

an amendment of FASB Statement No. 14

Introduction and Background Information ................................................................... 1–5

Paragraph 39 of FASB Statement No. 14, "Financial Reporting for Segments of a

INTRODUCTION AND BACKGROUND INFORMATION

If 10 percent or more of the revenue of an enterprise is derived from sales to any

Copyright © 1979, Financial Accounting Standards Board Not for redistribution

4. An Exposure Draft of a proposed Statement on "Disclosure of Information about Major

STANDARDS OF FINANCIAL ACCOUNTING AND REPORTING

Amendment to FASB Statement No. 14

6. Paragraph 39 of FASB Statement No. 14 is superseded by the following:

Copyright © 1979, Financial Accounting Standards Board Not for redistribution

Effective Date and Transition

The provisions of this Statement need

Donald J. Kirk, Chairman

Copyright © 1979, Financial Accounting Standards Board Not for redistribution

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