PracticeAuditGM delays fourth quarter results

GM delays fourth quarter results

Accounting and tax errors delay car maker's report

The world’s largest auto manufacturer,
General Motors, is to delay reporting its
2006 financial results due to accounting errors and other
issues.

The company stated today that it found tax accounting mistakes dating back to
before 2002, which will end up increasing its retained earnings for subsequent
years of between $450m and $600m.

GM’s CFO, Fritz Henderson, said the
company is not yet able to state the size of its expected fourth-quarter profit.

GM reported losing $3bn through the first three quarters of last year and
$10.6bn in 2005.

The company is also probing other accounting problems involving hedging
activities.

Before GM’s announcement, the company’s shares rose 40 cents, or 1.2 percent,
to close at $33.14 on the New York Stock Exchange.

The shares, which have traded in a 52-week range of $19 to $36.56, fell 19
cents in after-hours trading.

Further reading:

GM
delays 4Q report, cites accounting errors

GM boss promises to strengthen internal accounting

GM to report ‘rectified’ accounts

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

2d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

7d Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

1m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter