$39 BILLION?

And to think how much it costs for a product launch these days, or a brand...

 

oh well...just another day at the office.

 

Not defending GM but if I understand (which I probably don't, lol), they said it's a "non-cash" loss, a decision to no longer recognize/account future tax credits as some kind of future asset so they wrote that off, which I kinda think is refreshing, they took OFF the rose-colored glasses. If and when they start making more consistent profits they will have a 'banner' quarter by leveraging the tax credits again (on paper at least).

If any of you guys think doing the accounting for a company like GM is easy with global regulations, tax laws, so many divisions, etc., you're a bit naive. Especially with stuff like Sarbanes-Oxley which basically says if the officers knowingly paint an unrealistic picture they go to jail.

 

Dammmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmmme!!!!!!!! 39billion!

 

Yes, it is a non-cash loss which relates to a valuation of deferred tax credits which relates to FIN 48 and of course section 404 (SOX) or Sarbanes-Oxley which relates more to internal control is definitely affecting GM. They have to play by the rules now which are becoming much more stricter. With these losses for tax purposes they can either carry them back or forward and receive refunds for years they had taxable income...

 

I could've used some of that $39 billions.......