{"id":316,"date":"2024-09-06T16:48:36","date_gmt":"2024-09-06T16:48:36","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/financial-statement-presentation-3\/"},"modified":"2024-09-11T20:27:23","modified_gmt":"2024-09-11T20:27:23","slug":"financial-statement-presentation-3","status":"publish","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/financialaccounting\/chapter\/financial-statement-presentation-3\/","title":{"raw":"Financial Statement Presentation","rendered":"Financial Statement Presentation"},"content":{"raw":"<section class=\"textbox learningGoals\" aria-label=\"Learning Goals\">\r\n<ul>\r\n \t<li>Report non-current liabilities on the balance sheet<\/li>\r\n<\/ul>\r\n<\/section>&nbsp;\r\n\r\nFord Credit debt payable within one year (Note 20)51,179<strong>52,371<\/strong>Ford Credit long-term debt (Note 20)88,887<strong>87,658<\/strong>Deferred income taxes (Note 7)597<strong>490<\/strong>\r\n<table class=\"fin-table acctstatement\"><caption>FORD MOTOR COMPANY AND SUBSIDIARIES\r\nCONSOLIDATED BALANCE SHEETS\r\n(in millions)<\/caption>\r\n<thead>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Description <\/span><\/th>\r\n<th scope=\"col\">December 31, 2018<\/th>\r\n<th scope=\"col\">December 31, 2019<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>LIABILITIES<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Payables<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a021,520<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a0<strong>20,673<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other liabilities and deferred revenue (Note 17)<\/td>\r\n<td class=\"r\">20,556<\/td>\r\n<td class=\"r\"><strong>22,987<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Automotive debt payable within one year (Note 20)<\/td>\r\n<td class=\"r\">2,314<\/td>\r\n<td class=\"r\"><strong>1,445<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other debt payable within one year (Note 20)<\/td>\r\n<td class=\"r\">--<\/td>\r\n<td class=\"r\"><strong>130<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Liabilities held for sale (Note 24)<\/td>\r\n<td class=\"r\">---<\/td>\r\n<td class=\"r\"><strong>526<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Total current liabilities<\/strong><\/td>\r\n<td class=\"r line-single line\"><span class=\"u-sr-only\">Single line<\/span>\r\n95,569<\/td>\r\n<td class=\"r line-single line\"><span class=\"u-sr-only\">Single line<\/span>\r\n<strong>98,132<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"3\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other liabilities and deferred revenue (Note 17)<\/td>\r\n<td class=\"r \">23,588<\/td>\r\n<td class=\"r\"><strong>25,324<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Automotive long-term debt (Note 20)<\/td>\r\n<td class=\"r\">11,233<\/td>\r\n<td class=\"r\"><strong>13,233<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other long-term debt (Note 20)<\/td>\r\n<td class=\"r\">600<\/td>\r\n<td class=\"r\"><strong>470<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Total liabilities<\/strong><\/td>\r\n<td class=\"r line-single line\"><span class=\"u-sr-only\">Single line<\/span>\r\n220,474<\/td>\r\n<td class=\"r line-single line\"><span class=\"u-sr-only\">Single line<\/span>\r\n225,307<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n\r\nYou can probably see some of the inter-relationships between current and non-current liabilities. The most notable is that long-term debt includes a current portion that has to be split out on the face of the financial statements. It is usually entitled \u201ccurrent portion of long-term debt\u201d, but on the Ford Motor Company balance sheet, it is conveniently called \u201cdebt payable within one year\u201d and is detailed in Note 20.\r\n\r\nIn addition, note the amount of $25.324 billion reported as \u201cOther liabilities and deferred revenue: is detailed in Note 17 (along with details of the current other liabilities of $22.987 billion):\r\n\r\nAccrued interest9881,128OPEB5,2205,740\r\n<table class=\"fin-table acctstatement\">\r\n<thead>\r\n<tr>\r\n<th colspan=\"3\">NOTE 17. OTHER LIABILITIES AND DEFERRED REVENUE<\/th>\r\n<\/tr>\r\n<tr>\r\n<th colspan=\"3\">\u00a0\u00a0\u00a0\u00a0\u00a0<em>Other liabilities and deferred revenue<\/em> <strong>at December 31 were as follows (in millions)<\/strong>:<\/th>\r\n<\/tr>\r\n<tr>\r\n<th><span class=\"u-sr-only\">Description <\/span><\/th>\r\n<th scope=\"col\">2018<\/th>\r\n<th scope=\"col\">2019<\/th>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Current<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Dealer and dealers' customer allowances and claims<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a011,369<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a013,113<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Deferred revenue<\/td>\r\n<td class=\"r\">2,095<\/td>\r\n<td class=\"r\">2,091<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Employee benefit plans<\/td>\r\n<td class=\"r\">1,755<\/td>\r\n<td class=\"r\">1,857<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>OPEB<\/td>\r\n<td class=\"r\">339<\/td>\r\n<td class=\"r\">332<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Pension<\/td>\r\n<td class=\"r\">204<\/td>\r\n<td class=\"r\">184<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Operating lease liabilities<\/td>\r\n<td class=\"r\">---<\/td>\r\n<td class=\"r\">367<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other<\/td>\r\n<td class=\"r\">3,806<\/td>\r\n<td class=\"r\">3,914<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total current other liabilities and deferred revenue<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span>\r\n$\u00a0\u00a0\u00a0\u00a0\u00a020,556<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span>\r\n$\u00a0\u00a0\u00a0\u00a0\u00a022,987<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<tr>\r\n<td colspan=\"3\"><\/td>\r\n<\/tr>\r\n<tr>\r\n<td><span class=\"u-sr-only\">Subcategory, <\/span><strong>Non-current<\/strong><\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Pension<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a09,423<\/td>\r\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a09,878<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Dealer and dealers' customer allowances and claims<\/td>\r\n<td class=\"r\">2,497<\/td>\r\n<td class=\"r\">1,921<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Deferred revenue<\/td>\r\n<td class=\"r\">3,985<\/td>\r\n<td class=\"r\">4,191<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Operating lease liabilities<\/td>\r\n<td class=\"r\">---<\/td>\r\n<td class=\"r\">1,047<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Employee benefit plans<\/td>\r\n<td class=\"r\">1,080<\/td>\r\n<td class=\"r\">1,104<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Other<\/td>\r\n<td class=\"r\">1,383<\/td>\r\n<td class=\"r\">1,443<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total non-current other liabilities and deferred revenue<\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span>\r\n$\u00a0\u00a0\u00a0\u00a0\u00a023,588<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span>\r\n$\u00a0\u00a0\u00a0\u00a0\u00a025,324<span class=\"u-sr-only\">Double line<\/span><\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\n&nbsp;\r\n\r\nThe Pension and OPEB (other post-employment benefits, such as health insurance) are long-term liabilities because they represent the present value of the future payments to employees who have or will retire and qualify for company benefits.\r\n\r\nOn the income statement, for finance leases, interest on the finance right-of-use liability and amortization (depreciation) on the finance right-of-use asset are presented in the same manner as the entity presents all other interest and depreciation expenses on similar assets. For operating leases, lease expense is included in the operating expenses.\r\n\r\n<section class=\"textbox tryIt\" aria-label=\"Try It\">[ohm2_question hide_question_numbers=1]25215[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\" aria-label=\"Learning Goals\">\n<ul>\n<li>Report non-current liabilities on the balance sheet<\/li>\n<\/ul>\n<\/section>\n<p>&nbsp;<\/p>\n<p>Ford Credit debt payable within one year (Note 20)51,179<strong>52,371<\/strong>Ford Credit long-term debt (Note 20)88,887<strong>87,658<\/strong>Deferred income taxes (Note 7)597<strong>490<\/strong><\/p>\n<table class=\"fin-table acctstatement\">\n<caption>FORD MOTOR COMPANY AND SUBSIDIARIES<br \/>\nCONSOLIDATED BALANCE SHEETS<br \/>\n(in millions)<\/caption>\n<thead>\n<tr>\n<th><span class=\"u-sr-only\">Description <\/span><\/th>\n<th scope=\"col\">December 31, 2018<\/th>\n<th scope=\"col\">December 31, 2019<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>LIABILITIES<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Payables<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a021,520<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a0<strong>20,673<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Other liabilities and deferred revenue (Note 17)<\/td>\n<td class=\"r\">20,556<\/td>\n<td class=\"r\"><strong>22,987<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Automotive debt payable within one year (Note 20)<\/td>\n<td class=\"r\">2,314<\/td>\n<td class=\"r\"><strong>1,445<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Other debt payable within one year (Note 20)<\/td>\n<td class=\"r\">&#8212;<\/td>\n<td class=\"r\"><strong>130<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Liabilities held for sale (Note 24)<\/td>\n<td class=\"r\">&#8212;<\/td>\n<td class=\"r\"><strong>526<\/strong><\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Total current liabilities<\/strong><\/td>\n<td class=\"r line-single line\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n95,569<\/td>\n<td class=\"r line-single line\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n<strong>98,132<\/strong><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\"><\/td>\n<\/tr>\n<tr>\n<td>Other liabilities and deferred revenue (Note 17)<\/td>\n<td class=\"r\">23,588<\/td>\n<td class=\"r\"><strong>25,324<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Automotive long-term debt (Note 20)<\/td>\n<td class=\"r\">11,233<\/td>\n<td class=\"r\"><strong>13,233<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Other long-term debt (Note 20)<\/td>\n<td class=\"r\">600<\/td>\n<td class=\"r\"><strong>470<\/strong><\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<strong>Total liabilities<\/strong><\/td>\n<td class=\"r line-single line\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n220,474<\/td>\n<td class=\"r line-single line\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n225,307<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>You can probably see some of the inter-relationships between current and non-current liabilities. The most notable is that long-term debt includes a current portion that has to be split out on the face of the financial statements. It is usually entitled \u201ccurrent portion of long-term debt\u201d, but on the Ford Motor Company balance sheet, it is conveniently called \u201cdebt payable within one year\u201d and is detailed in Note 20.<\/p>\n<p>In addition, note the amount of $25.324 billion reported as \u201cOther liabilities and deferred revenue: is detailed in Note 17 (along with details of the current other liabilities of $22.987 billion):<\/p>\n<p>Accrued interest9881,128OPEB5,2205,740<\/p>\n<table class=\"fin-table acctstatement\">\n<thead>\n<tr>\n<th colspan=\"3\">NOTE 17. OTHER LIABILITIES AND DEFERRED REVENUE<\/th>\n<\/tr>\n<tr>\n<th colspan=\"3\">\u00a0\u00a0\u00a0\u00a0\u00a0<em>Other liabilities and deferred revenue<\/em> <strong>at December 31 were as follows (in millions)<\/strong>:<\/th>\n<\/tr>\n<tr>\n<th><span class=\"u-sr-only\">Description <\/span><\/th>\n<th scope=\"col\">2018<\/th>\n<th scope=\"col\">2019<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td colspan=\"3\"><span class=\"u-sr-only\">Subcategory, <\/span><strong>Current<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Dealer and dealers&#8217; customer allowances and claims<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a011,369<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a013,113<\/td>\n<\/tr>\n<tr>\n<td>Deferred revenue<\/td>\n<td class=\"r\">2,095<\/td>\n<td class=\"r\">2,091<\/td>\n<\/tr>\n<tr>\n<td>Employee benefit plans<\/td>\n<td class=\"r\">1,755<\/td>\n<td class=\"r\">1,857<\/td>\n<\/tr>\n<tr>\n<td>OPEB<\/td>\n<td class=\"r\">339<\/td>\n<td class=\"r\">332<\/td>\n<\/tr>\n<tr>\n<td>Pension<\/td>\n<td class=\"r\">204<\/td>\n<td class=\"r\">184<\/td>\n<\/tr>\n<tr>\n<td>Operating lease liabilities<\/td>\n<td class=\"r\">&#8212;<\/td>\n<td class=\"r\">367<\/td>\n<\/tr>\n<tr>\n<td>Other<\/td>\n<td class=\"r\">3,806<\/td>\n<td class=\"r\">3,914<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total current other liabilities and deferred revenue<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$\u00a0\u00a0\u00a0\u00a0\u00a020,556<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$\u00a0\u00a0\u00a0\u00a0\u00a022,987<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\"><\/td>\n<\/tr>\n<tr>\n<td><span class=\"u-sr-only\">Subcategory, <\/span><strong>Non-current<\/strong><\/td>\n<\/tr>\n<tr>\n<td>Pension<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a09,423<\/td>\n<td class=\"r\">$\u00a0\u00a0\u00a0\u00a0\u00a09,878<\/td>\n<\/tr>\n<tr>\n<td>Dealer and dealers&#8217; customer allowances and claims<\/td>\n<td class=\"r\">2,497<\/td>\n<td class=\"r\">1,921<\/td>\n<\/tr>\n<tr>\n<td>Deferred revenue<\/td>\n<td class=\"r\">3,985<\/td>\n<td class=\"r\">4,191<\/td>\n<\/tr>\n<tr>\n<td>Operating lease liabilities<\/td>\n<td class=\"r\">&#8212;<\/td>\n<td class=\"r\">1,047<\/td>\n<\/tr>\n<tr>\n<td>Employee benefit plans<\/td>\n<td class=\"r\">1,080<\/td>\n<td class=\"r\">1,104<\/td>\n<\/tr>\n<tr>\n<td>Other<\/td>\n<td class=\"r\">1,383<\/td>\n<td class=\"r\">1,443<\/td>\n<\/tr>\n<tr>\n<td>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Total non-current other liabilities and deferred revenue<\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$\u00a0\u00a0\u00a0\u00a0\u00a023,588<span class=\"u-sr-only\">Double line<\/span><\/td>\n<td class=\"r line-single line-double\"><span class=\"u-sr-only\">Single line<\/span><br \/>\n$\u00a0\u00a0\u00a0\u00a0\u00a025,324<span class=\"u-sr-only\">Double line<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<p>The Pension and OPEB (other post-employment benefits, such as health insurance) are long-term liabilities because they represent the present value of the future payments to employees who have or will retire and qualify for company benefits.<\/p>\n<p>On the income statement, for finance leases, interest on the finance right-of-use liability and amortization (depreciation) on the finance right-of-use asset are presented in the same manner as the entity presents all other interest and depreciation expenses on similar assets. 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