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GE - In 2002 and 2003 some High-level GE accounting...

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In 2002 and 2003 some High-level GE accounting executive approved accounting which was not in compliance with Generally Accepted accounting Principles. The cookie jar accounting and other more questionable methods were use to smooth out their earnings and stop the decline of GE stocks. The four accounting violations are Beginning in January 2003, an improper application of accounting standards to GE’s commercial paper funding program to avoid unfavorable disclosure and an estimated approximately $200 million pre-tax charge to earnings. A 2003 failure to correct a misapplication of financial accounting standards to certain GE interest rate swaps In 2002 and 2003, end of year sales of locomotives to financial institutions in order to accelerate over $ 3070 million in revenue. In 2002, an improper change to GE’s accounting for sale of commercial aircraft engine spare parts that increased GE’s 2002 net earnings by $585 million. GE used hedge accounting to account for interest swaps held for the purpose of hedging interest rate exposure on its CP issuance, resulting smother report earnings. Some where in 2003 GE changed its CP hedge accounting approach to avoid reporting a disclosure that might have led to the loss
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