SEC Must Approve Automakers' Accounting Methods Before VEBA Can Take Effect
However, the VEBAs cannot "go into effect until Detroit automakers get their preferred bookkeeping vetted by federal bureaucrats -- and if they object, automakers can quit the deal on short notice," according to the Free Press. Lynn Turner, former chief accountant for SEC, said, "The question is, what's the likely total obligation, and what is GM still on the hook for?" adding, "That's where the attention of the SEC and investors will be."
Under the VEBA deals, if SEC rejects the automakers' plans, they can reopen negotiations with UAW to try to settle SEC's objections, or they could back out of their VEBA plans. GM in its annual report to SEC wrote, "GM may immediately terminate the settlement agreement if, after discussions with the SEC, GM does not believe that the accounting treatment ... is satisfactory to GM."
According to the Free Press, there is "no indication when the SEC might give approval" to the VEBA deals (Hyde, Detroit Free Press, 3/14).
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Sec aprobare Automakers' metodelor contabile înainte VEBA poate efect - SEC Must Approve Automakers' Accounting Methods Before VEBA Can Take Effect - articole medicale engleza - startsanatate