Clariette, Inc. is a multinational company based in China. The management of the company decided to expand its manufacturing business in the United States. Clariette purchased AllZone Distributors and Dinnon Supply to form Clariette Distributors and Clariette Supply. Because of these acquisitions, Clariette assumed debt of $2.2 billion and allocated $4.8 billion to goodwill. On Clariette's Annual Report filed with the SEC, Clariette reported only two industry segments: distribution and supplies. Although Clariette Distributors was profitable, Clariette Supply produced continued losses of approximately $2 billion. When Clariette purchased the supply operations, it projected a loss for only five years because it assumed that the supply operations would become profitable. However, Clariette suffered a significant loss after amortization and the costs of financing the acquisition for the past four years. In the current year, Clariette Supply sustained a loss of nearly $450 million, double the amount that Clariette had planned. To date, Clariette Supply has had total net losses of nearly $2 billion. Early in the year, Clariette declared that it had written down $3.7 billion in goodwill associated with the acquisition of Clariette Supply. Clariette combined the results of Clariette Distributors and Clariette Supply and reported them as Clariette Manufacturing. Little profit was shown in Clariette Manufacturing. Clariette's consolidated financial statements did not disclose the losses from Clariette Supply. REQUIRED How should the write down of goodwill be reported? What information (if any) should be disclosed related to goodwill? Since Clariette has two businesses with different financial trends, should the consolidated financial statements provide specific segment disclosure information? What should the company disclose? Reporting insufficient information or excluding required disclosures can be misleading or perceived as unethical. What ethical standards applicable to Clariette's reporting?