Ford Motor Company (Ford) plans to invest the provision, which recorded more than its deferred tax assets. Due to the significant losses 2006-2008, Ford has $ 10.3 billion of tax losses carried forward, and other deferred tax assets, but because of the uncertainty, Ford has not recognized the value of these deferred tax assets in the balance. Given the improving business conditions in 2009 and 2010, Ford must now decide whether it is “more likely than not” realize the value of its deferred tax assets and providing $ reverse $ 15.7 million that was recorded. If reversed, Ford must also decide how to make the change in value in the financial statements.
by
Darren Henderson,
Christine Liu
Source: Ivey Publishing
16 pages.
Date Posted: February 15, 2012. Prod #: W11700-PDF-ENG
Ford Motor Company: Accounting for Deferred Tax Case Solution
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