On August 4, 2009, the Securities and Exchange Commission (SEC) fined General Electric Company (GE), $50M for reporting false and misleading financial statements. The transactions occur were not in compliance with Generally Accepted Accounting Principles (GAAP). Furthermore, the four accounting violations occur in 2002 and continued through 2003. The SEC identified risks that uncovered four separate accounting violations, and GE corrected the last of the violations in 2008. The violations are as follows:
Beginning in January 2003, an improper application of the accounting standards to GE's commercial paper funding program to avoid unfavorable disclosures and an estimated approximately $200 million pre-tax charge to earnings.
2003 failure
Beginning in January 2003, an improper application of the accounting standards to GE's commercial paper funding program to avoid unfavorable disclosures and an estimated approximately $200 million pre-tax charge to earnings.
2003 failure