Tag Archives: contingent liabilities

Would Subway have disclosed or accrued for the class-action lawsuit filed against it for the length of its footlong subs?

Nine Subway customers joined forces to file a class-action lawsuit against Subway, alleging that its footlong submarine sandwiches were not actually a foot, or 12 inches, in length, but were closer to 11 inches.  The class action suit was filed in 2013 and Subway settled a few years later, agreeing to pay the plaintiffs’ attorneys […]

Continue reading

How should Ford treat the contingency resulting from the Ford Mustang Shelby GT350 owners’ class action lawsuit?

Ford Motor Company produces and sells the Ford Mustang Shelby GT350, which Ford markets as a track-ready car built to reach and sustain high speeds. Three of the 2016 Ford Mustang Shelby GT350 owners have filed a class action suit against Ford, alleging that these cars are not track-ready. These owners claim that the car […]

Continue reading

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

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 […]

Continue reading

10-K Minute: Target, Data Breach, and Contingent Liabilities

Background In the fourth quarter of 2013, hackers broke into Target Corporation’s system and stole the names and credit card information for up to 70 million customers. This data breach is among the largest data breaches in U.S. history and lawsuits against Target Corporation are being filed by several parties including customers, credit card companies, […]

Continue reading