I need help reviewing my paper on analysis of 10-K for Ford Motor Company.

Assignment asks for:

Write paper describing the amounts of current and deferred income taxes.

Explainthe items that affect both these classifications.

Providedetails of the current and long-term portion of the deferred taxes. Be sure to list the Note number where you found your information.

Here is what I wrote after reviewing the 10K report. I just need help to see if what I have satisfies the assignment or if I am missing any major points:

Week Three Signature Assignment

This week assignment involved analyzing of Ford Motor Co 10-K form for the fiscal year ended December 31, 2018. The paper describes the amounts of current and deferred income taxes, explaining the items that affect both these classifications, and provide details of the current and long-term portion of the deferred taxes.

Current and Deferred Income Taxes

According to www.corporateford.com ()," provision for income taxes for full year 2018 was $650 million, resulting in an effective tax rate of 15.0%. Our full year 2018 adjusted effective tax rate, which excludes special items, was 9.7%" (CREATING TOMORROW, TOGETHER FORD MOTOR COMPANY - 2018 ANNUAL REPORT). Based on Generally Accepted Accounting Principles (GAAP), company reported 4,345 million income before taxes. Because GAAP and tax regulation differ, it results in differences between financial and taxable income. The taxable income for Ford Motor Co was presented in 10K for fiscal year ended on December 31, 2018 as follows:

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Deferred income tax represents the difference in income recognition between tax laws and the company'saccounting methods. For this reason, the company's payable income tax may not equate to the total tax expense reported (Kieso, 2016).

Deferred taxation is the process of transferring tax expense between different periods so a company can better match revenues with expenses through a process called deferred taxation" (Xplained.com, ).

The report lists total current provisions for income taxes at 759 million and total deferred benefits from income taxes at 109 million.

Items Affecting the Classification and Details for Deferred Taxes

Deferred tax assets are assets on company's books that can be used to reduce taxable income. Deferred liabilities are obligations carried on company's books that can result in future increases in taxable income. Note 7 of 10K for Ford Motor Co for fiscal year ended December 31, 2018 provides the components deferred tax assets and liabilities at December 31 were as follows (in millions) as follows:

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Note 7 of 10K for Ford Motor Co for fiscal year ended December 31, 2018 present operating losses carryforwards for 2018 were 4.8 billion for tax purposes, resulting in 1.8 billion deferred tax assets. Tax credits available to offset future tax liabilities are $9.2 billion and half of these credits have expected carryforward period of five years or more (www.corporateford.com, ). Another deferred tax asset component was research expenditures, dealer customer allowances and claims, and other foreign deferred taxes.

Companies recognize deferred tax asset for all deductible temporary differences, but they should reduce a deferred tax asset by a valuation allowance (Kieso, 2016). Valuation allowance represents a portion of deferred assets that will be most likely not be realized. Note 7 for Ford Motor Co lists valuation differences of $1 billion primarily related to deferred tax assets in various non-U.S. operations (www.corporateford.com, ).

Deferred tax liabilities will increase tax payable in future years due to temporary differences existing at the end of the current period (Kieso, 2016). Ford Motor Co reported deferred tax liabilities resulting from leasing transactions, depreciation and amortization, finance receivable, and other foreign deferred tax liabilities.