Final answer:
Entities must disclose the revenue amount or percentage and the operating segment for major customers, without revealing the customer's name or location, to indicate concentration of credit risk.
Step-by-step explanation:
When an entity has a major customer, specific disclosure requirements must be followed according to financial reporting standards such as the Generally Accepted Accounting Principles (GAAP) or the International Financial Reporting Standards (IFRS). The entity must disclose the amount (or percentage) of revenue generated from that customer and the operating segment that generates revenues from the customer. However, it is not required to disclose the name or location of the major customer to protect confidentiality. The purpose of these disclosures is to indicate the concentration of credit risk and the potential financial impact if the business relationship with the major customer is altered.