Question

Given the information below, which segments should be reported? Industry Operating Revenue Profit (Loss) Assets Hotels $460 $70 $770 Communications 50 8 100 Entertainment 40 7 50 Financial Services 70 5 20 Insurance 130 (25) 50 Totals $770 $65 $990 __________________________________________________ are reportable segments

Answer 1

Industry	Operating Revenue	Profit/Loss	Assets
Hotels	$                        460.00	$        70.00	$ 770.00
Communications	$                          50.00	$          8.00	$ 100.00
Entertainment	$                          40.00	$          7.00	$    50.00
Financial services	$                          70.00	$          5.00	$    20.00
Insurance	$                        130.00	$      -25.00	$    50.00
Total Revenue and Assets	$                        750.00		$ 990.00
Total Profit		$        90.00
Total Loss		$      -25.00
10% Criteria for Revenue and Assets	$                          75.00		$    99.00
10% Criterai for Profit		$          9.00
10% Criterai for Loss		$        -2.50

A segment is reportable in following cases:-

A. If revenue of segment exceeds 10% of combined revenue - Hotels , Insurance

B. If assetd of segment exceeds 10% of combined total assets - Hotels, Communications

C. If Profit of segment exceeds 10% of combined profits(donot include segments with loss) - Hotels

D. If Loss of segment exceeds 10% of combined loss(donot include segments with profit) - Insurance