XML 34 R9.htm IDEA: XBRL DOCUMENT v3.20.1
New Accounting Standards (Notes)
 3 Months Ended
Mar. 31, 2020
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
NEW ACCOUNTING STANDARDS NEW ACCOUNTING STANDARDS

Adoption of New Accounting Standards

Accounting Standards Update (“ASU”) 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments. On January 1, 2020, we adopted the new credit loss standard and all of the related amendments, which replaced the incurred loss impairment method with a method that reflects lifetime expected credit losses. We adopted the changes in accounting for credit losses by recognizing the cumulative effect of initially applying the new credit loss standard as an adjustment to the opening balance of Retained earnings. The comparative information has not been restated and continues to be reported under the accounting standard in effect for those periods.

The cumulative effect of the changes made to our consolidated balance sheet at January 1, 2020, for the adoption of ASU 2016-13, Credit Losses - Measurement of Credit Losses on Financial Instruments, was as follows (in millions):
 
 
Balance at December 31, 2019
 
Adjustments due to ASU 2016-13
 
Balance at
January 1, 2020
Assets
 
 
 
 
 
 
Ford Credit finance receivables, net, current
 
$
53,651

 
$
(69
)
 
$
53,582

Trade and other receivables, net
 
9,237

 
(3
)
 
9,234

Ford Credit finance receivables, net, non-current
 
53,703

 
(183
)
 
53,520

Equity in net assets of affiliated companies
 
2,519

 
(7
)
 
2,512

Deferred income taxes
 
11,863

 
2

 
11,865

Liabilities
 
 
 
 
 
 
Deferred income taxes
 
490

 
(58
)
 
432

Equity
 
 
 
 
 
 
Retained earnings
 
20,320

 
(202
)
 
20,118



We also adopted the following ASUs during 2020, none of which had a material impact to our consolidated financial statements or financial statement disclosures:
ASU
 
Effective Date
2020-01
Clarifying the Interaction between Equity Securities, Equity Method and Joint Ventures, and Derivatives and Hedging
 
January 1, 2020
2018-18
Clarifying the Interaction between Collaborative Arrangements and Revenue from Contracts with Customers
 
January 1, 2020
2018-15
Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract
 
January 1, 2020

Accounting Standards Issued But Not Yet Adopted

The Company considers the applicability and impact of all ASUs.  ASUs were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements.