Tag Archives: contingencies

How would Kraft account for the contingent liability arising from a class action lawsuit alleging that it takes more than the advertised 3 ½ minutes to prepare Velveeta Microwaveable Shells & Cheese cups?

November 28, 2022 by Dr. Wendy Tietz, CPA, CMA, CSCA, CGMA 2 Comments

On the packaging of Velveeta Microwaveable Shells & Cheese cups, it says that it takes three and a half minutes to cook to the right consistency of cheese. However, for one upset Florida woman, it seems to be untrue. According to the South Florida Sun-Sentinel, Amanda Ramirez has filed a proposed class-action lawsuit accusing Kraft […]

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Ch 08 Current liabilities, Financial accounting
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Which contingent liabilities resulting from the Volkswagen (VW) emissions cheating scandal would be recognized or disclosed in Volkswagen Group’s financial statements?

January 19, 2016 by Dr. Wendy Tietz, CPA, CMA, CSCA, CGMA 2 Comments

Volkswagen manufactures the iconic Beetle in addition to other models including the Passat, the Jetta, and others.  Volkswagen Group (VW) has been embroiled in an emissions cheating scandal discovered in 2015. Essentially, what happened is that VW’s engineers developed and inserted software in VW car engines to cheat on the emissions testing process, making its […]

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Ch 09 Long-term liabilities, Financial accounting
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