General Motors Corp. announced in a filing that the Securities and Exchange Commission is investigating the company's handling of retirement benefits and its relationship with bankrupt auto-parts manufacturer Delphi Corp.
According to GM, the investigation is specifically over its pension accounting and transactions with Delphi, a spin-off of GM, and whether GM understated debt or inflated income in its handling of the recovery of recall costs from suppliers.
"These matters include GM's financial reporting concerning pension and other post-employment benefits, certain transactions between General Motors and Delphi, GM's recovery of recall costs from suppliers and supplier price reductions or credits, and any obligation GM may have to fund pension and OPEB costs in connection with Delphi's proceedings under Chapter 11," GM said in the SEC filing.GM's finance unit, General Motors Acceptance Corp., also said that it is being probed as part of a separate SEC and grand jury investigation of insurers. Regulators have been investigating the policies of other companies, including American International Group and Berkshire Hathaway.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access