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Ford Motor Company: Accounting for Deferred Taxes

Darren Henderson; Christine Liu;

商品編號:9B11B023
出版日期:2012/02/16
再版日期:
商品來源:Ivey
商品主題:Accounting
商品類型:Case (Library)
涵蓋議題:Deferred Taxes;Valuation Allowance;Income Taxes;Disclosure;United States
難易度:4 - Undergraduate/MBA
內容長度:16 頁
地域:United States
產業:Manufacturing;
事件年度:2011

Ford Motor Company (Ford) is considering whether to reverse the valuation allowance it has recorded over its deferred tax assets. Due to substantial losses from 2006 to 2008, Ford has $10.3 billion of tax loss carryforwards in addition to other deferred tax assets; however, due to uncertainty, Ford has not recorded the value of those deferred tax assets on its balance sheet. In light of improving business conditions over 2009 and 2010, Ford must now decide whether it is "more likely than not" to realize the value of its deferred tax assets and reverse the $15.7 billion valuation allowance it has recorded. If reversed, Ford must also decide how to present the change in valuation in its financial statements.

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