Disclosure Analysis Paper Essay

Disclosures ar an essential break of fiscal reporting for publically traded corporations. The following analysis provide look into common Motors lodges disclosure relating to the companys current as conditions of bills equivalents, inventory, and receivables. Disclosures can be found within the universal Motors Companys pecuniary statements and they volition help readers gain a better understanding of the monetary data. The segments of the companys disclosures will be analyzed in detail throughout this paper. The widely distributed Motors Company uses a table of table of contents for their significant disclosures so that the reader(s) of their financial statements can easily find whatever he or she whitethorn be looking for. The type of disclosure is listed along with a page number where the precise education can be found. The disclosures for the General Motors Companys assets are very precise. The first note to the reader(s) deals with Presentation. This section expla ins that General Motors Companys financial statements are prepared in accordance with generally recognised accounting principles (GAAP) in the United States. This section also lets the reader(s) know of any new accounting samples utilize by the company.In the year 2010 a few of these new monetary standards were how the company financed receivables, fair value measurements, transfers of financial assets, and variable interest entities. In note three the company gives teaching about accounting standards, which take a leak been issued, but are not yet in use in the General Motors Company. One standard deals with business combinations a new standard issued by the Financial Accounting Standards Board (FASB). The new standard for business combinations according to General Motors Company/Annual Report (2011) deals with the disclosure of supplemental pro forma information for business combinations that occur during the current year (Notes to financial statements). However, this standar d was not to go into effect until January 1, 2011 so it was not incorporated into the 2010 financial statements. Another accounting standard that had not yet be pick out dealt with financial services-insurance. This standard was also put into place bythe FASB and it addressed the deferral of acquisition cost within the insurance industry. Basically the new standard changed or modified the type of costs in a company that can be capitalized in the renewal and acquisition of insurance industry.See more analytical writingThis standard would not go into effect until January 1, 2012, so it was not adopted for the 2010 financial statements. Within the notes section Note four contains information about Fair Value Measurements. jibe to General Motors Company/Annual Report, silver equivalents, commercialiseable securities, and derivative financial instruments are presented on our financial statements at fair value (Notes to financial statements). The note goes on to explain where the rea der(s) of the General Motors Company financial statements will be able to find the fair value of debt, finance receivables, along with the carrying value related to these receivables and debt. According to General Motors Company/Annual Report (2011), High liquid investments with a maturity of 90 geezerhood or less at date of secure are classified as Cash and cash equivalents. Investments in securities with a maturity date of greater than 90 days at date of purchase are classified as Marketable securities (Notes to financial statements). Note five deals with Cash and Restricted Cash disclosures.This note informs the reader(s) of the financial statements that restricted cash would not include cash apply to secure debt set up because of securitization business deals. According to General Motors Company/Annual Report (2011) Both cash and cash equivalents, which are restricted because of withdrawals of cash or the cash equivalents used under the terms of certain contractual arrangemen ts will be recorded as restricted in other assets on the consolidated vestibular sense sheet (Notes to financial statements). Also discussed in this section are how negative balances are reclassified and the way in which the company treats these occurrences. On the General Motors Company financial statements commercial paper, bank accounts, marketable securities, money market funds, and treasury bills are elements in the cash and cash equivalent sections on the financial statements. All these elements are considered highly liquid and are to be used by the General Motors Company for short-term ask if required. Note 10 for General Motors Companys financial statements deals with inventories. This disclosure states that the companys inventories are stated at what is lower between market and cost.Also stated is that a large part of the United States inventories cost are determined by a last-in,first-out (LIFO) inventory method. The LIFO method was used in between 31% to 26% of GMs inve ntories at December 31, 2010 and 2009 respectively (General Motors Company/Annual Report, 2011). First-in, first-out (FIFO) inventory method is used for determining cost for their other inventories. In conclusion the General Motors Companys financial statements contain a great deal of information and included in this information are 31 disclosures. All the companys disclosures were placed in their financial statements to tutelage the reader(s) with understanding the financials as well as making an educated evaluation and informed decisions about the General Motors Company and their financial statements.