Final answer:
The difference between IFRS and U.S. GAAP regarding operating segment reporting involves the criteria for defining reportable segments and the extensiveness of required disclosures.
Step-by-step explanation:
The main difference between IFRS and U.S. GAAP in relation to operating segment reporting lies in the criteria for determining reportable segments and the disclosures required. Under IFRS, operating segments are identified based on the 'management approach,' which is grounded in the way that management organizes segments for making operational decisions and assessing performance. An operating segment is reportable if it meets specified quantitative thresholds concerning revenue, profits or losses, and assets.
U.S. GAAP also utilizes the management approach but includes explicit quantitative thresholds that are slightly different from those under IFRS. Under U.S. GAAP, additional information is required to be disclosed, such as the reconciliation of segment profit or loss to consolidated income before income taxes, equity method investee income, and extraordinary items, if any. Consequently, the scope of segmental information and level of detail provided may vary between the two sets of standards.