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Ford Expects $1.5 Billion Gain on Pension Accounting Change
Ford Motor Co. says its pretax earnings for 2015 will gain about $1.5 billion because of a change to “market-to-market” accounting methods for pensions and other post-retirement benefits.
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Ford Motor Co. says its pretax earnings for 2015 will gain about $1.5 billion because of a change to “market-to-market” accounting methods for pensions and other post-retirement benefits.
The adjustment will increase pretax earnings for the year to between $10 billion and $11 billion, according to the company. Ford also has used the system to restate its financial data for 2013 and 2014.
The system, also called immediate recognition accounting, applies pension gains and losses on an annual basis rather than amortizing them over several years. Ford notes that many large U.S. companies have adopted a similar reporting method.
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