General Motors Corp. (NYSE: GM) today announced it will record a net
noncash charge of $39 billion for the third quarter of 2007 related to
establishing a valuation allowance against its deferred tax assets
(DTAs) in the U.S., Canada and Germany.
Not everyday you can restate your balance sheet by $39 billion. Apparently, if you lose money long enough, then FASB rules assume that there is a good chance you may never use your tax-loss carry-forwards, so they have to be written down.