Sour Grapes
Of course we're Fair and Balanced!

2009-04-23

When does GM count its cars as being "sold"?

In recent discussions of General Motors' plan to shut down factories for up to nine weeks this summer, I heard that GM recognizes revenue when vehicles are manufactured, not when they're sold. If I heard correctly, this practice is in accord with reporting standards set by the Financial Accounting Standards Board (FASB), who proclaim´┐Żapparently on every page of their website´┐Żthat they are "serving the investing public through transparent information resulting from high-quality financial reporting standards, developed in an independent, private-sector, open due process."

I just have a couple of questions. The ability to report revenue in this way serves the investing public how? Do we need any more evidence that big business is vastly under-regulated?



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