So General Motors is telling investors that you probably shouldn't put much weight in its financial reporting. We would have thought that this might have been obvious from the fact that they just restated several years of financials. But just in case you were tempted to think they had solved all their accounting problems, GM wants to assure you that this is definitely not the case.
From the New York Times:
General Motors, a company once known as the model of corporate accounting, warned investors on Thursday that its performance was threatened by “ineffective” controls over financial reporting, including inadequately trained personnel and failure to obtain management’s approval for some transactions.
The disclosure, made in G.M.’s annual report filed with federal regulators after a six-week delay, was the latest indication that the automaker is on shakier footing than first thought.
It comes a day after G.M. restated five years of financial results and reported that it lost $2 billion in 2006 — a significant improvement over the previous year’s $10.4 billion loss but a sizable negative number nonetheless.
G.M. Says It Has Found Serious Flaws in Accounting[General Motors}