Ford Motor said Thursday it is making a change in its accounting for its huge pension obligations that will boost its 2015 pre-tax profit by $1.5 billion and level the playing field with the other Big Three automakers.
The change to mark-to-market accounting means Ford will now recognize pension and other post-retirement employee benefits remeasurement gains and losses in the year incurred (generally in the fourth quarter) rather than amortizing them over many years. Read more.
A Colorado judge has ruled the U.S. Federal Reserve acted properly in denying approval to a credit union seeking to become the first financial institution to serve the state’s marijuana industry.
The Fourth Corner Credit Union sued the Fed’s Kansas City branch in July for rejecting the bank’s application for a master account that would allow it to transact business. The lawsuit claimed Fourth Corner should have “equal access” to the financial system even though marijuana is still illegal under federal law. Read more.
Surveys of manufacturing and non-manufacturing sectors “suggest the U.S. economy cooled off in the fourth quarter.”
Critics said the rule added confusion to banks’ earnings statements and distorted their financial performance.
The “flash” sales site was an early hit online, but the economics of the daily deals business caught up with it.
One of the Big Three adopts mark-to-market accounting for its pension obligations.
Colorado court backs the Federal Reserve’s denial of credit union’s application to serve marijuana businesses.
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