As if GE did nor have enough troubles: CEO ousted, flaws in its power-plant turbines, dividend cut yet again, and now the Justice Department has announced criminal probe into its accounting. The SEC is already there on accounting issues. The new CEO has not commented on the accounting issues except to say that a CEO should never say that “there is nothing in the woodpile.” Conjures up some powerful images.
Apple — no longer going to disclose unit sales on iPhones, iPads, and Macs. Generally, when companies change sales reporting methods, there is a decline. When Coach no longer identified outlet sales vs. retail store sales it was because the brand was in a dip. Apple remains mute about unit sales, explanations, and insights. More probably coming.
Tesla — how exactly did Tesla make its biggest profit ever? Not entirely from care sales. Tesla booked $189.5 million in sales of government credits. The government credits are earned by Tesla by producing clean-energy products. Tesla can sell those credits to other companies. Not the core business, and a tribute to a government that subsidizes car purchases by the wealthy.
Accounting remains more art than science.