Question

Up to 10 points extra credit Open (or download) General Motors' 10-K report for the year ending December 31, 2018. (To find the report, search the internet for "General Motors Investor Relations". On the search results page, click "SEC Filings". Filter by selecting "Annual Filings" in the "Group" field. Select the most recent 10-K report.) Find the audit reports in the financial statement section of the 10-K. (HINT: General Motors adds the audit report at the beginning of the financial statement section.) 1. General Motors included two audit reports in the 10-K. Why? 2. One of the audit reports included two report dates (was dual dated). The second date was related to Note 25. Segment Reporting. Find the original Segment Reporting footnote in the financial statements for the year ended December 31, 2017. What changed? Why did the auditor have to do additional work? ... :: ojo 8 RTY U TOP

Answer 1

Two Audit report represents

1. “ Annual Report pursuant to Section 12 or 15(d) of the Securities Exchange ACT of 1934
2. Transition Report pursuant to Section 12 or 15(d) of the Securities Exchange ACT of 1934

Transition report are required for all transition periods in excess of one month.

A transition report on FORM 10-k , including audited financial statements , is required for transition periods of six pr more months . For transition periods less than six months , a registrant has the option of filling its transition report either form 10 –Q , including unaudited financial statement , or FORM 10 k , including audited financial Statement.

Transition period also disclose the comparable information must include revenue, gross profit , Income taxes , Income or loss from continuing operations , net income or loss . In addition the effects of discontinuation operation

Second Part – Notable point under Segment Reporting matter -31^st Dec 2017 vs 31^st Dec 2018

As per latest report by GM , their Chief Operating decision maker decided to disclose GM cruise separately from 2018 onwards . Earlier year , it was part of Corporate. The Chief operating decision maker evaluate the performance of the company, as a result of growing importance of their autonomous Vehicle operation , they have decided to change the above bifurcation . Going forward GM Cruise will be disclosed as separate Operating Segment .

Other important point to note that European business ( GM E) was not performing well operationally and decided to disclose as discounted Operation and its excluded from Segment reporting This was earlier part of GM finance .

The Chief Operating decision maker evaluates the operating results and performance of Automotive segment and GM Cruise through EBIT adjusted which is presented net of Non controlling Interest . he also evaluates that GM financial through Earnings before Income tax adjusted because Interest Income and expenses are part of operational result while reviewing and measuring Operational and financial performance of Segment .

Because of all above changes expect in 2018 by GM Chief decision Maker , Auditor has to take additional responsibility