'Disclosure Analysis Paper Essay\r'

'Disclosures argon an essential get out of monetary reporting for in public traded corporations. The following analysis bequeath look into world(a) Motors conjunction’s disclosure relating to the confederation’s current as particularizes of bullion equivalents, inventory, and receivables. Disclosures can be run aground within the ecumenic Motors union’s fiscal statements and they impart help readers gain a fall apart understanding of the monetary data. The sub members of the company’s disclosures will be analyzed in detail throughout this paper. The commonplace Motors Company uses a table of confine for their significant disclosures so that the reader(s) of their financial statements can well find whatever he or she whitethorn be looking for. The type of disclosure is listed along with a page number where the precise info can be found. The disclosures for the familiar Motors Company’s assets are very precise. The first note to the reader(s) deals with Presentation. This section explains that General Motors Company’s financial statements are prepared in accordance with generally current invoice principles (GAAP) in the United States. This section likewise lets the reader(s) know of any new accounting quantityizeds utilise by the company.\r\nIn the year 2010 a few of these new amounts were how the company financed receivables, fair think of measurements, transfers of financial assets, and variable interest entities. In note ternion the company gives study about accounting standards, which deport 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/ one-year Report (2011) deals with â€Å"the disclosure of supplemental pro forma information for business combinations that occur during the current year” (Notes to financial statements). However, this standard 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 adopted dealt with financial services-insurance. This standard was also put into business office by the FASB and it addressed the deferral of acquisition be 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.\r\nSee to a great extent: analytical writing\r\nThis 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. consort to General Motors Company/Annual Report, â€Å" funds equivalents, commercialise placeable securities, and differential gear financial i nstruments are presented on our financial statements at fair value” (Notes to financial statements). The note goes on to explain where the reader(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), â€Å" broad(prenominal) liquid investments with a maturity of 90 geezerhood or less at date of procure are classified as Cash and bills 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.\r\nThis note informs the reader(s) of the financial statements that curtail bills would not include coin use to secure debt set up because of securitization business deals. According to General Motors Company/A nnual Report (2011) â€Å"Both cash and cash equivalents, which are restricted because of withdrawals of cash or the cash equivalents utilize under the terms of certain contractual arrangements will be recorded as restricted in other assets on the consolidated rest 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 demand if required. Note 10 for General Motors Company’s financial statements deals with inventories. This disclosure states that the company’s inventories are stated at what is lower between m arket and cost.\r\nAlso 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 GM’s inventories at December 31, 2010 and 2009 respectively (General Motors Company/Annual Report, 2011). First-in, first-out (FIFO) inventory method is used for ascertain cost for their other inventories. In conclusion the General Motors Company’s financial statements contain a great deal of information and included in this information are 31 disclosures. All the company’s disclosures were placed in their financial statements to encourage the reader(s) with understanding the financials as well as make an educated evaluation and informed decisions about the General Motors Company and their financial statements.\r\n'