Business
Ford to Restate Results
Ford to Restate Results.
About this update from Fdm Group (holdings) Plc
[{"type":"text","content":"\n Ford Motor Co\n23 October 2006\n\n\n\n\nContact: Media: Equity Investment Fixed Income Shareholder Inquiries:\n Becky Sanch Community: Investment Community: 1.800.555.5259 or\n 1.313.594.4410 Raj Modi Rob Moeller 1.313.845.8540\n [email protected] 1.313.323.8221 1.313.621.0881 [email protected]\n [email protected] [email protected]\n\n\n\nEditor's note: The following is one of two related press releases Ford Motor\nCompany is issuing today. Please also refer to the release entitled: 'FORD\nREPORTS PRELIMINARY THIRD QUARTER 2006 FINANCIAL RESULTS.'\n\n\n\nFORD TO RESTATE RESULTS SINCE 2001 FOR ACCOUNTING UNDER SFAS 133\n\n\n\nDEARBORN, Mich., Oct. 23, 2006 - Ford Motor Company (NYSE: F) today announced it\nplans to restate previous financial results from 2001 through the second quarter\nof 2006 to correct the accounting for certain derivative transactions under the\nStatement of Financial Accounting Standards (SFAS) 133, Accounting for \nDerivative Instruments and Hedging Activities.\n\nThe correction to the accounting does not affect the economics of the derivative\ntransactions, nor have any impact on the company's cash. However, the\nrestatements are expected to affect the preliminary financial results Ford\nannounced today for its 2006 third quarter. The company expects to finalize\nrestatement amounts for the current period and all previous periods by the time\nof the filing of its Quarterly Report on Form 10-Q for the quarter ended Sept.\n30, 2006. (For full details regarding Ford's preliminary results for the 2006\nthird quarter, please see press release entitled, 'FORD REPORTS PRELIMINARY\nTHIRD QUARTER 2006 FINANCIAL RESULTS.')\n\nFord discovered that since 2001, certain interest rate swaps Ford Motor Credit\nCompany had entered into to hedge the interest rate risk inherent in certain\nlong-term fixed rate debt were accounted for incorrectly under SFAS 133 because\nthey did not satisfy the standard's technical accounting rules to qualify for\nexemption from the more strict effectiveness testing requirements. Ford Motor\nCredit Company uses transactions involving derivatives, including swaps,\nforwards and options, to reduce economic risk and volatility in a disciplined\nand defensive manner. PricewaterhouseCoopers LLP, the company's independent\nregistered public accounting firm, audited Ford's 2001 through 2005 financial...