Ford Motor Company says about $1.7 billion of its exposure to off-balance sheet vehicles might have to be brought on to its books in compliance with new US accounting standards.

The move "could result in a material impact" on this year's earnings.

The disclosure, made on Friday in a Securities and Exchange Commission filing, means Ford joins other US companies such as General Motors and Merrill Lynch in outlining their exposure to off-balance sheet vehicles that might have to be consolidated in their accounts.

General Motors said last week that its maximum exposure to losses from the consolidation of these special purpose entities was about $4.3 billion.

A spokeswoman said Ford had not changed its full-year earnings a share target of 70 cents as a result of the disclosure.

The revelations follow changes to accounting policy made to avoid a repeat of the Enron debacle. Enron, the bankrupt energy trader, was able to shield off-balance sheet vehicles from scrutiny by exploiting existing accounting rules.

But in January, the Financial Accounting Standards Board issued new guidance, stating special purpose entities (SPEs) should be consolidated on to the balance sheets of the parent company.

Ford uses SPEs when it securitises loans made to customers through Ford Credit, its financing arm. This removes the loans from the company's balance sheet and puts the receivables beyond the reach of creditors.

- (Financial Times Service)