The controller of Getaway Corporation has prepared and summarized the following information for her company (all in millions of $):
$$\begin{array}{lrrrr}& \text{ External sales }& \begin{array}{r}\text{ Inter-segment }\\ \text{ sales }\end{array}& \begin{array}{r}\text{ Operating }\\ \text{ profit (loss) }\end{array}& \text{ Total assets }\\ \text{ Hotels }& 975& & 89& 1,050\\ \text{ Car rentals }& 512& & 65& 642\\ \text{ Guided tours }& 205& & (25)& 221\\ \text{ Bus tours }& 173& 100& 11& 250\\ \text{ Cruises }& \underline{98}& \underline{50}& \underline{(15)}& \underline{95}\\ \text{ Total }& \underline{1,963}& \underline{150}& \underline{125}& \underline{2,258}\end{array}$$ Required:
Identify which segments are reportable. Also discuss any ethical issues related to reporting of segmented information.

(All discussion in millions of dollars.)
Based on total revenues (including external and internal)of $2,113, any segment with more than $211 of revenues will be reportable. This test results in hotels, car rentals, and bus tours being reportable based on the revenue.
Based on total profits, the threshold is 10% of $165 ($89 + $65 + $11), which is $16.50. Hotels, car rentals, and guided tours are reportable segments based on the profit threshold test.
Based on the asset threshold test, any segment with assets of $226 is reportable. Based on this test, only the hotels, car rentals, and bus tour segments are reportable.
Based on the above analysis hotels, car rentals, guided tours, and bus tours are reportable.
From an ethical perspective, companies may attempt to hide poor operating results by combining segments. It is up to management to define the segments, which could be based on products, services, geographies, or customers. It may be that segregation by products/services would show some segments to show losses and some profits. On the other hand, segmentation by customer type (business and residential, for example)might report all segments being profitable, which would provide a more favourable picture.