General Electric Financial Reporting Analysis

3933 WordsMay 6, 201116 Pages
Target Company Selection Process The target company we decided on for our financial analysis is General Electric. At first we were looking at Starbucks, as it is a rapidly growing multinational corporation, but after some research we discovered that the earnings per share growth of Starbucks is 40.2%. Therefore Starbucks did not meet the requirement set at 50% EPS growth to be considered a truly “rapidly growing company”. We then continued our research and were able to find that General Electric has current EPS growth at 59.6%, which meets the requirement. Also, by searching through the annual 10-K we found the following information, which shows that GE is truly a multinational company and has more than 10% sales in other countries.…show more content…
In our opinion, the consolidated financial statements appearing on pages 60, 62, 64, 66–114 and the Summary of Operating Segments table on page 34 present fairly, in all material respects, the financial position of GE as of December 31, 2009 and 2008, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, GE maintained, in all material respects, effective internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control — Integrated Framework issued by COSO (KPMG). As stated, GE’s annual report is prepared using U.S. GAAP. Being headquartered in the U.S., this is a practical way to prepare the annual report. There did not appear to be any contradictions in the report from the auditor regarding which accounting standards were used in preparing the annual report. 4. Time Period of Report (Fiscal Year) The Annual Report (10-K) shows that GE’s fiscal year ended December 31, 2010. As for the Auditor Report, the following shows that the reports cover 2008 and 2009 up to December 31. We have audited the accompanying statement of financial position of General Electric Company and consolidated affiliates (“GE”) as of December 31, 2009 and 2008, and the related statements of earnings, changes in
Open Document