This excerpt taken from the GMTC 10-Q filed Jun 9, 2008.
1. BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements and related disclosures as of April 30, 2008 have been prepared in accordance with generally accepted accounting principles in the United States (GAAP) applicable to interim financial information and with the instructions to Form 10-Q and Rule10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In our opinion, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of our financial position and interim results have been included. Operating results for the three and six-month periods ended April 30, 2008 are not necessarily indicative of the results that may be expected for the current fiscal year or any other period.
The balance sheet at October 31, 2007 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes, as well as other information included in our Annual Report on Form 10-K for the year ended October 31, 2007 and any other of our filings with the Securities and Exchange Commission.
USE OF ESTIMATES
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Allowance for doubtful accounts, obsolescence, impairment of goodwill, loss contingencies, provision for income taxes, and stock-based compensation are significant estimates made by us. Actual results could ultimately differ from those estimates.
Certain prior period reclassifications have been made to conform to classifications in the current period.