General Motors (GM)signs a new labour agreement agreeing to give its workers a 5% wage increase next year.This transaction will affect GM's financial statements in the current year.
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Question

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The transaction will not affect GM's financial statements in the current year as the wage increase will not take effect until next year. The impact on financial statements will be reflected in the year the wage increase is implemented.

General Motors (GM)signs a New Labour Agreement Agreeing to Give