Ford Motor Company (Ford) is in view of whether to revoke the valuation allowance it has recorded over its deferred tax assets. Due to considerable losses from year 2006 to 2008, Ford has $10.3 billion of tax loss carryforwards in further addition to the other deferred tax assets; nonetheless, due to doubt, Ford has not recorded the worth of those deferred tax assets on its balance sheet.
In light of enhancing business conditions over 2009 and 2010, Ford must now determine whether it's "more likely than not" to recognize the value of its own deferred tax assets and revoke the $15.7 billion valuation allowance it's recorded. If revoked, Ford must also determine the way to present the change in valuation in its financial statements.
PUBLICATION DATE: February 15, 2012 PRODUCT #: W11700-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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