“General Electric Co. said it will change the way it makes disclosures in its financial reports, including providing more detail about specific businesses in its GE Capital financial-services arm,” writes Rachel Silverman in today’s Wall Street Journal.

“The move makes GE the latest company to change its financial-disclosure practices amid questions about accounting and disclosure at Enron Corp. and other companies. GE said the changes will be evident in its annual report, which is expected March 8.”

” ‘If the annual report or quarterly report has to be the size of the New York City phone book, that’s life,’ said Jeffrey Immelt, GE’s chairman and chief executive. ‘But the extent to which in order to help my investors feel better, they need to know more things and different things and see it in a different way — I’m always open to that.’ “

“Keith Sherin, GE’s finance chief, said the company will now provide revenue and operating profit figures for 26 businesses, from both GE’s industrial units and its GE Capital unit. Previously, the company reported 12 business segments in its annual report. GE, for instance, will now report its fast-growing Medical Systems business separately in its annual report.”

“GE will continue to consolidate the 25 businesses of GE Capital, ranging from airplane leasing to mortgage lending, into five main segments. But the annual report will state information about 14 businesses within those five segments. For instance, under consumer services, there will be revenue and earnings information about three specific businesses: card services, financial assurance and global consumer finance.”

“It is unclear whether the changes, which GE said were planned before the firestorm spurred by accounting and disclosure questions at Enron, Tyco International Ltd. and Global Crossing Ltd., would satisfy critics. Some investors worry that GE’s large size and complexity make it hard to fully grasp the company’s finances, a problem that could be compounded if GE grows ever bigger with aggressive acquisitions. The hardest business for many observers to grasp is GE Capital, which makes up 40% of GE’s profits.”

“Earlier this year, GE’s shares took a dive amid broad worries about financial transparency triggered by Enron’s bankruptcy filing, although the share price rose again after Mr. Immelt reaffirmed GE’s earnings forecast earlier this month.”

“Mr. Sherin said GE has tried to be responsive to calls for more openness. Since the fall, analyst presentations have been Webcast. Mr. Sherin also said GE expects to soon hold quarterly earnings conference calls, as early as the first quarter, which the company hadn’t done before.”

“GE says it has more than 200 analyst and investor meetings every year, focusing on specific aspects of its businesses, including those at GE Capital, as well as about 500 internal auditors. Moreover, the company says it has won 16 investor relations awards in the past five years. KPMG LLP is GE’s auditor.”