Ford Hides Money... Rumor??

[Pipefitter]

Is anyone else here hearing the "rumor" that Ford was caught hiding 36-39 Billion dollars?

[boegey]

Is anyone else here hearing the "rumor" that Ford was caught hiding 36-39 Billion dollars?

 

Being a publicly traded company on the stock exchange, Ford is open to audits on an annual basis. With Ford's financial situation, I believe everyone and their brother have gone through Ford's books. Plus, hiding the money and creating this financial crisis doesn't aid Ford's stock price at all. I find this "rumor" difficult to believe.

 

Unless Arthur Anderson did the accounting audit!!

 

Boegey

[napfirst]

Is anyone else here hearing the "rumor" that Ford was caught hiding 36-39 Billion dollars?

is this a real question?

[Furious1Auto]

Being a publicly traded company on the stock exchange, Ford is open to audits on an annual basis. With Ford's financial situation, I believe everyone and their brother have gone through Ford's books. Plus, hiding the money and creating this financial crisis doesn't aid Ford's stock price at all. I find this "rumor" difficult to believe.

 

Unless Arthur Anderson did the accounting audit!!

 

Boegey

Yes, but there are legal ways to spend money creating a loss on the books. The easiest way to bury your profit for a company like Ford would be in R&D. Also devaluing your stock allows you to buy back your stock at a price lower than you sold it for! Although I cant prove thats what their doing, it is in their best interest to do so going into labor negotiations!

[boegey]

Yes, but there are legal ways to spend money creating a loss on the books. The easiest way to bury your profit for a company like Ford would be in R&D. Also devaluing your stock allows you to buy back your stock at a price lower than you sold it for! Although I cant prove thats what their doing, it is in their best interest to do so going into labor negotiations!

Point well made, Furious!!

 

Boegey

[napfirst]

Yes, but there are legal ways to spend money creating a loss on the books. The easiest way to bury your profit for a company like Ford would be in R&D. Also devaluing your stock allows you to buy back your stock at a price lower than you sold it for! Although I cant prove thats what their doing, it is in their best interest to do so going into labor negotiations!

you need to watch out for those black helicopters!

[DukeNukem]

I hide money, do you?

[J-150]

Yes, but there are legal ways to spend money creating a loss on the books. The easiest way to bury your profit for a company like Ford would be in R&D. Also devaluing your stock allows you to buy back your stock at a price lower than you sold it for! Although I cant prove thats what their doing, it is in their best interest to do so going into labor negotiations!

 

 

I guess you've never heard of Sarbanes-Oxley

[Furious1Auto]

I guess you've never heard of Sarbanes-Oxley

Who would ever question monies spent by Ford on R&D to develop better fuel mileage and environmentally friendly products. If their is no proof their is no crime! Are you suggesting that because their are laws people won't try to manipulate their books, get real. I'm assuming that is why Ford had to show a profit this quarter. If you show a loss by buying tax deductible goods that depreciate over a three year period than at some point your tax credits will push you in to the black! If they are too obvious than people will become hip, and you go to jail. My grandmother owns a corporation and DBA's two others. As kids she always told us that one of the business's always lost money. What she was not telling us was that the failing business was what made all of the purchases for goods all three business's shared. Basically she buried one in debt and loss for the tax advantages!

The Sarbanes-Oxley Act of 2002 (Pub. L. No. 107-204, 116 Stat. 745, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; is a United States federal law was signed into law on July 30, 2002 in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Peregrine Systems and WorldCom. These scandals resulted in a decline of public trust in accounting and reporting practices. Named after sponsors Senator Paul Sarbanes (D-MD) and Representative Michael G. Oxley (R-OH), the Act was approved by the House by a vote of 423-3 and by the Senate 99-0. President George W. Bush signed it into law, stating it included "the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt." [1]

 

The legislation is wide-ranging and establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. The Act contains 11 titles, or sections, ranging from additional Corporate Board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law. Supporters of these reforms believe the legislation was necessary and useful while critics believe it does more economic damage than it prevents.

 

The Act establishes a new quasi-public agency, the Public Company Accounting Oversight Board, or PCAOB, which is charged with overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. The Act also covers issues such as auditor independence, corporate governance, internal control assessment, and enhanced financial disclosure.

Edited August 11, 2007 by Furious1Auto

[davdog]

Who would ever question monies spent by Ford on R&D to develop better fuel mileage and environmentally friendly products. If their is no proof their is no crime! Are you suggesting that because their are laws people won't try to manipulate their books, get real. I'm assuming that is why Ford had to show a profit this quarter. If you show a loss by buying tax deductible goods that depreciate over a three year period than at some point your tax credits will push you in to the black! If they are too obvious than people will become hip, and you go to jail. My grandmother owns a corporation and DBA's two others. As kids she always told us that one of the business's always lost money. What she was not telling us was that the failing business was what made all of the purchases for goods all three business's shared. Basically she buried one in debt and loss for the tax advantages!

The Sarbanes-Oxley Act of 2002 (Pub. L. No. 107-204, 116 Stat. 745, also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox; is a United States federal law was signed into law on July 30, 2002 in response to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Peregrine Systems and WorldCom. These scandals resulted in a decline of public trust in accounting and reporting practices. Named after sponsors Senator Paul Sarbanes (D-MD) and Representative Michael G. Oxley (R-OH), the Act was approved by the House by a vote of 423-3 and by the Senate 99-0. President George W. Bush signed it into law, stating it included "the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt." [1]

 

The legislation is wide-ranging and establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms. The Act contains 11 titles, or sections, ranging from additional Corporate Board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law. Supporters of these reforms believe the legislation was necessary and useful while critics believe it does more economic damage than it prevents.

 

The Act establishes a new quasi-public agency, the Public Company Accounting Oversight Board, or PCAOB, which is charged with overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. The Act also covers issues such as auditor independence, corporate governance, internal control assessment, and enhanced financial disclosure.

 

Knowing that you're the same person who uses the word where instead of were it was pretty easy to see that this was a copy and paste job. Why don't you just post the link instead of making everyone think these are your words of wisdom?

[Furious1Auto]

Knowing that you're the same person who uses the word where instead of were it was pretty easy to see that this was a copy and paste job. Why don't you just post the link instead of making everyone think these are your words of wisdom?

Only the second half is a Wikipedia quote, the anecdote is mine! the theory is also mine. The business practice is common! If you own a business and don't wish to show a profit to give you tax or other advantages you must spend the profit on tax deductible items or services. Anyone who owns a corporation, and any accountant knows this! As for my spelling and grammar, I realize it's mediocre sometimes but, doesn't discredit my arguement If you fact check. It was just a cheap shot on your part!

[J-150]

Only the second half is a Wikipedia quote, the anecdote is mine! the theory is also mine. The business practice is common! If you own a business and don't wish to show a profit to give you tax or other advantages you must spend the profit on tax deductible items or services. Anyone who owns a corporation, and any accountant knows this! As for my spelling and grammar, I realize it's mediocre sometimes but, doesn't discredit my arguement If you fact check. It was just a cheap shot on your part!

 

 

 

you still don't understand what the act means and its' implications.

 

It means that if companies park or hide money in R&D like you propose, they get nailed. There is a reasonable output expected for invested funds. Part of the new SOX is that directors are now accountable for the consequences of getting cought hiding money.

 

Now. Instead of just copying and pasting from Wikipedia, go talk to an accountant about this.

[Trimdingman]

you still don't understand what the act means and its' implications.

 

It means that if companies park or hide money in R&D like you propose, they get nailed. There is a reasonable output expected for invested funds. Part of the new SOX is that directors are now accountable for the consequences of getting cought hiding money.

 

Now. Instead of just copying and pasting from Wikipedia, go talk to an accountant about this.

 

 

Was that a Freudian slip? Are you hiding money? You had better "cough't" up.

 

 

Ford's annual sales are in the hundred billion dollar range. Their profits, when they have them, are in the single digit billion or hundred millions. That is razor thin. I know that when they are doing well, we get lots of overtime. Maybe we get the excess profits. That way the government gets more when they tax it from us. We use the windfall to put down payments on new cars. I hope that it is true that Ford has money put aside.

 

When I look around, I see a lot of cars. I see more cars than anything else. If I were from another planet, just visiting, I would think to myself: The companies that make cars must rule this planet.

Edited August 13, 2007 by Trimdingman

[Furious1Auto]

you still don't understand what the act means and its' implications.

 

It means that if companies park or hide money in R&D like you propose, they get nailed. There is a reasonable output expected for invested funds. Part of the new SOX is that directors are now accountable for the consequences of getting cought hiding money.

 

Now. Instead of just copying and pasting from Wikipedia, go talk to an accountant about this.

With the loss of market share and the implication of CAFE standards who would question billions spent on R&D? How much does it cost, and how much did they spend! So, we know their are laws on reporting. Does that mean that companies will not even attempt to manage their business? Of course they will, the just adapt to the new regulations ad work within them! I think with their tax credits that their having a hard time reporting a loss, considering all of the cost cutting measures they have recently put in place! I'll bet you that by the end of 07' or beginning of 08' they will be reporting profits that they haven't seen since 98',99'! I'll bet you $50.00

Edited August 13, 2007 by Furious1Auto

[J-150]

With the loss of market share and the implication of CAFE standards who would question billions spent on R&D? How much does it cost, and how much did they spend! So, we know their are laws on reporting. Does that mean that companies will not even attempt to manage their business? Of course they will, the just adapt to the new regulations ad work within them! I think with their tax credits that their having a hard time reporting a loss, considering all of the cost cutting measures they have recently put in place! I'll bet you that by the end of 07' or beginning of 08' they will be reporting profits that they haven't seen since 98',99'! I'll bet you $50.00

 

 

where have you been?

Ford has already reported a profit.

[Furious1Auto]

With the loss of market share and the implication of CAFE standards who would question billions spent on R&D? How much does it cost, and how much did they spend! So, we know their are laws on reporting. Does that mean that companies will not even attempt to manage their business? Of course they will, the just adapt to the new regulations ad work within them! I think with their tax credits that their having a hard time reporting a loss, considering all of the cost cutting measures they have recently put in place! I'll bet you that by the end of 07' or beginning of 08' they will be reporting profits that they haven't seen since 98',99'! I'll bet you $50.00

their not profitting like in 98' and 99'. I already addressed that they showed a profit! I'm not saying that that is what they are doing, only that it is legally possible and beneficial at this time!

Who would ever question monies spent by Ford on R&D to develop better fuel mileage and environmentally friendly products. If their is no proof their is no crime! Are you suggesting that because their are laws people won't try to manipulate their books, get real. I'm assuming that is why Ford had to show a profit this quarter. If you show a loss by buying tax deductible goods that depreciate over a three year period than at some point your tax credits will push you in to the black! If they are too obvious than people will become hip, and you go to jail. My grandmother owns a corporation and DBA's two others. As kids she always told us that one of the business's always lost money. What she was not telling us was that the failing business was what made all of the purchases for goods all three business's shared. Basically she buried one in debt and loss for the tax advantages!

Edited August 15, 2007 by Furious1Auto