GM has demonstrated once again how to guggle with numbers to avoid showing a huge loss on their financial statements under GAAP (Generally Accepted Accounting Principles). By having intangible asset as their biggest non-current asset, it protected GM from having a negative equity of $6.3 billion. Under GAAP, adjustments must be made to goodwill which in turns reduce incomes; their income for 2012 would have been higher if they did not choose to writedown. The reason why GM still ended up with a huge profit was due to another intangible entry by booking tax benefit, which put GM back into good standing.
For more details (source): http://www.thetruthaboutcars.com/2013/02/how-gm-avoided-a-30-billion-loss-with-a-little-juggling/
For more details (source): http://www.thetruthaboutcars.com/2013/02/how-gm-avoided-a-30-billion-loss-with-a-little-juggling/