Ford 10-K or Annual Report 1. One of Ford's most significant liabilities concerns pensions and other postretirement

Question:

Ford 10-K or Annual Report

1. One of Ford's most significant liabilities concerns pensions and other postretirement benefits. What is the nature of estimates required to value these liabilities? What risks do these estimates pose for the audit firm?

2. Read Ford's MD&A disclosures concerning goodwill impairments. Describe the nature of estimates that management needs to make in order to estimate the impairments. What audit evidence would you want to gather to be assured that management's estimates are reasonable?

Ford 10-K, Toyota 20-F

3a. Warranty liabilities are a significant concern for manufacturers like Ford and Toyota. See the footnotes detailing information about warranties for each company.

What are the amounts for accrued warranty liabilities and yearly warranty expense for each company?

3b. What is the nature of estimates required for warranty liabilities?

3c. What planning analytical procedures can you develop to help you understand the relative size of the warranty accounts for both companies? What inferences do you draw from the comparison of these analytics?

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...