Disclosure Analysis Paper: Ford Motor Company

Disclosure Analysis Paper: Ford Motor Company

June 10, 2013

ACC 422

Walfayette Powell

Disclosure Analysis Paper: Ford Motor Company

In 1903 Henry Ford stared the Ford Motor Company. Since 1903 investors have received continued value from holding stake in the Ford Motor Company. Ford offers three investment opportunities for investors. Before making investment decisions potential investors would review Fords financial statements. Ford Motor Company has numerous disclosures within their financial statements for their assets. These disclosures will be discussed further, as well as a list identifying the components of the organization's cash and cash equivalents will be provided.

Ford Motor Company financial statements are formatted in an easy to read format. Their important disclosures can be located in a Table of Content section. They list what the disclosure is for, and then reference the page number that the specific disclosure can be found on. Although there are many disclosures dealing with Ford Motor Company's financial statements, the ones dealing with the assets are specific. One of the notable ones is the Cash and Restricted Cash disclosure under Note 5. It starts off stating that, "Cash and cash equivalents that are restricted as to withdrawal or usage under the terms of certain contractual arrangements are recorded as restricted in Other assets on our consolidated balance sheet." It goes on to mention that, "Restricted cash does not include required minimum balances, or cash securing debt rose through securitization transactions." This disclosure is to further explain the treating of the cash and the cash equivalents that are restricted, and let the users know where these items are classified on the balance sheet. It also touches on the review and reclassification of any negative balances, and how they are treated. Restricted cash balances were as follows (in millions):

December 31, 2012 December 31, 2011

Automotive sector $ 172 $ 330

Financial Services sector 172 149

Total Company $ 344 $ 479

According to the Financial Statements, the following are the components of the cash and cash equivalent category mentioned in the statements:

Bank Accounts

Treasury Bills

Commercial paper

Money market funds

Marketable Securities

These cash and cash equivalents mentioned in the finance statement, were mentioned to have high liquidity, and are for the need of short term uses if Ford Motor Company has the need.

Another disclosure mentioned in the financial statements was in relation to financial receivables, which is one of the largest receivable classifications for Ford Motor