Controllership
In controllership reviews, what is the #1 rule when booking a probable loss offer?
Ensuring the offer has a time validity
During the transition, what will be the primary focus of Risk Finance in EMEA?
Supporting commercial deals
In P5DC, why does waiting longer to sign a renegotiation usually make the outcome more punitive
Because CTD% increases with time, making CC more sensitive
ASC 606 is the accounting standard covering what?
Revenue recognition
As of 2Q25, approximately how many CSAs are active across the EMEA fleet?
243
How is an amendment changing GEV's legal entity and address defined in controllership jargon?
Perfunctory amendment
Which country in EMEA has most active CSAs as of 2Q25?
Italy (19)
Name one key trigger that increases CC hits in a P5DC run.
Higher CTD% or delayed reneg signature
What is the difference between an ExW and a Reneg under 606?
ExW = point-in-time sale of extra scope; Reneg = permanent and significant change to contract terms.
As of 2Q25, what is the approximate total Deferred value of the EMEA fleet CSAs?
1.5B
What type of contract is booked when the CM% turns negative, requiring recognition of expected future losses?
A loss contract
What's the latest backlog for EMEA CSAs (2Q25)
14B (8B MENA, 5B EU, 0.3B SSA)
What is the maximum CC hit in P5DC relative to the DB exposure?
It cannot exceed the DB exposure
What is the recommended way to mitigate the financial impact of a concession under ASC 606?
Approving and closing the concession in the same quarter, so the net impact is limited to costs/billing left on the table rather than full FMV
1999
Which rule forces GEV to proactively book CC hits even before a deal is signed?
The Probable Loss rule
Which 3 countries were highlighted as most impacted by finance HC reductions in 2H25?
Switzerland, UAE, and France
Why do renegotiations signed in CMR quarters often worsen financials in P5DC?
Because baseline moves and timing of costs/billings shift, creating side-effects on DB impairment allocations.
What are the three criteria that must be met for something to qualify as a concession?
Provision of value, related to perceived GE fault, arising from past obligations.
Which technology contributes the single largest share of backlog value in the EMEA fleet?
9F with ~35%
Which controllership principle requires concessions to be booked at FMV, outside the CSA, once they are probable and estimable?
Concession accounting
Under the 2H25 operating model, who leads budgeting and pacing for most P&Ls, and what exact role remains for the EMEA region team?
HQ (budgeting) and HQ & Ops Finance (pacing), while the region checks assumptions and flags/mitigates R&Os and supports only on key deals
Which two strategies can be used to reduce CC hits in a P5DC?
Reducing discounts on the existing term and moving costs out from the existing term
Under ASC 606, what accounting impact occurs when a reset is triggered on a CSA?
An in-quarter change to the go-forward CM%, with CC booked at signature/approval and closeout/GF modeling at the next CMR
As of 2Q25, what region contributes to the highest backlog in EMEA?
MENA with 57%, $8.3B in Backlog