Go to www.ford.com to locate the Ford home page. Click on the More Ford link near the

Question:

Go to www.ford.com to locate the Ford home page. Click on the More Ford link near the top of the page. Select Investors from the drop-down menu. Then select the most recent annual report under the category Financial Reports and SEC Filings.
Answer these questions about Ford.
1. Does Ford prepare consolidated statements and what is the basis for consolidation?
2. How does Ford determine the companies it reports on the equity method?
3. What information does Ford provide about the investments that it accounts for using the equity method? Consider the balance sheet, income statement, and footnotes in your answer.
4. What information does Ford provide about its marketable securities shown on the consolidated balance sheets? Can you tell which ones are classified as trading securities?
5. Did Ford include any on its balance sheet? Why would Ford want to pay more than the value of the net assets of a company it acquired?

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...