Analyzing the Annual Report of GM

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Analyzing the Annual Report of GM

Introduction

It is very important for public listed companies to prepare their annual reports and also provide them to all of their stakeholders. These foremost include the stockholders or the share holders of the company. Each company, which is public, is required to file Form 10-K reports with the SEC. These reports include information, in addition to what is contained, in their annual report. Usually, these reports are more detailed than other annual reports. These have additional financial disclosure requirements put by the SEC. However, many companies only prepare the Form 10-K reports and use the same as their annual reports. Still, there could be subtle differences in the two if a company decides to make them as such (SEC, 2011).

Likewise, the GM Corporation also files its annual reports with the SEC. It prepares both an annual report for its investors and other potential investors as well as the Form 10-K reports to be filed with the SEC. The company's annual report is all inclusive. It does not omit any information and includes all of the pertinent financial and other nonfinancial information about the giant company. However, it gives a broad introduction about the company and its operations in the beginning. Then, it provides all of the necessary financial information.

First, the annual report 2011 of GM contains all of the relevant market information. This includes the market making in the company's shares as well as any information with respect to the share repurchasing that occurred over the year. Then, it provides a general highlight of the financial performance and standing of the business for the year. Then, the management also discusses the results and gives its opinions with respect to the achievements and health of the organization. The market risk of the business has also been covered in sufficient detail. Then, the financial statements of the business in consolidated form have been provided. Further, the financial statements are also appended by notes to these statements that contain more financial and other detail with respect to different accounts. Finally, the controls and procedures have been identified in the report. Lastly, they have also given asset valuation details (GM, 2012).

Analysis of the annual report

The annual report of the business is typically used to disclose important financial information about the business for the period to the stockholders. It is expected to provide at the minimum certain required information. This information must be provided, in addition to the Form 10-K reports, that are required, by the SEC, to be filed by the public companies.

The company first needs to provide a letter from the Chief Executive Officer of the business. Here, the company has provided a letter from its Chairman and Chief Executive Officer, Daniel F. Akerson. This letter is directed to the shareholders and contains important information such as the outlook of the business going forward, previous year's financial highlights showing the performance and status of the company, the principles through which GM conducts ...