General Electric fortifies defense against charges of bogus accounting

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General Electric Co reinforced its defense of its accounting practices on Monday after investors asked more questions about an unusual research report last week that accused the jet engine and power plant maker of financial fraud.

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NEW YORK (Reuters) – General Electric Co reinforced its defense of its accounting practices on Monday after investors asked more questions about an unusual research report last week that accused the jet engine and power plant maker of financial fraud.

FILE PHOTO: General Electric Co. Chief Executive Officer Larry Culp mingles with shareholders at the company’s annual meeting in Tarrytown, New York, U.S., May 8, 2019. REUTERS/Alwyn Scott/File Photo

Markopolos’ report said GE needs to add $18.5 billion to reserves now because it has underestimated its potential claims, and will need to add a further $10.5 billion when new accounting rules take effect in 2021 or 2022.

Regarding Baker Hughes, GE said on Monday that the company’s assets and income are correctly included in GE’s financial reports because GE owns 50.2%, down from 50.4% last year.

Markopolos said GE is double-counting because it does not in practice direct activities at Baker Hughes.

Reporting by Alwyn Scott; Editing by Nick Zieminski and Rosalba O’Brien


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General Electric Co reinforced its defense of its accounting practices on Monday after investors asked more questions about an unusual research report last week that accused the jet engine and power plant maker of financial fraud.

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