GM to pay $1M penalty to SEC for ignition switch accounting trouble

DETROIT – Basic Motors Co. has agreed to pay a $1 million penalty for violating accounting guidelines involving its lethal ignition change scandal.

The Securities and Trade Fee says the corporate settled expenses that it had poor controls that stopped it from correctly assessing the scandal’s influence on monetary statements.

GM consented to an SEC order with out admitting to fees. The SEC says corporations have to determine the probability of a recall and estimate the attainable loss. The company discovered that a 2012 firm investigation of the scandal wasn’t delivered to the eye of accountants till no less than 18 months after it started.

GM recalled 2.6 million small automobiles worldwide in 2014. The switches are chargeable for at the least 124 deaths and 275 accidents.

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