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GM Provides Update on Accounting Issues
GM Provides Update on Accounting Issues.
About this update from Gaming Realms Plc
[{"type":"text","content":"\n \n GM Provides Update on Accounting Issues\n\n DETROIT, Feb. 19 - General Motors Corp. (NYSE: GM) announced today it has \nsubstantially completed its previously announced review of deferred income \ntaxes as well as the accounting for derivatives under Statement of Financial \nAccounting Standards (SFAS) No. 133, Accounting for Derivative Instruments and \nHedging Activities. GM has determined that its previously filed financial \nstatements and financial information for 2002 through the third quarter of \n2006 should no longer be relied upon, largely due to adjustments in hedge \naccounting.\n GM's accounting adjustments under SFAS No. 133 are substantially complete, \nalthough some work remains. The current estimate of the cumulative impact of \nthese SFAS No. 133 adjustments to retained earnings, including GMAC, as of \nSeptember 30, 2006 is an increase of approximately $200 million.\n In addition, GM previously disclosed that retained earnings as of December \n31, 2001 and subsequent periods were understated by a range of $450 million to \n$600 million due to an overstatement of deferred tax liabilities. GM \ncurrently estimates that the deferred tax liability overstatement is \napproximately $1 billion. This impact is partially offset by an estimated \n$500 million adjustment to stockholders' equity related to taxation of foreign \ncurrency translation, arising primarily prior to 2002, and affects all periods \nthrough the third quarter of 2006. The net impact of such tax adjustments \nresults in an understatement of stockholders' equity as of December 31, 2001 \nand subsequent periods of approximately $500 million.\n GM is currently working toward filing its Form 10-K with restated \nfinancial information by the due date, March 1, 2007. If necessary, it would \nexpect to obtain an extension from the SEC and file prior to the extended \ndeadline, March 16, 2007.\n GM does not expect these adjustments to have any material impact on cash \nflow for any of the restated periods. \n General Motors Corp. (NYSE: GM), the world's largest automaker, has been \nthe global industry sales leader for 76 years. Founded in 1908, GM today \nemploys about 284,000 people around the world. With global headquarters in \nDetroit, GM manufactures its cars and trucks in 33 countries. In 2006, 9.1 \nmillion GM cars and trucks were sold globall...