ACC645_ Week 8_ Discussion_ Post 1

Kroger evaluates contingencies based on the best available resources and evidence.

Additionally, Kroger believes that having allowances for loss have been both necessary and

reasonable for contingent liabilities (SEC, 2018). a Through evaluation, two principal

contingencies of insurance and litigation were discovered. The litigation contingency appears

more prominent for me because it is inclusive of all claims and lawsuits that arise during

normal business operations. a Litigation contingent liabilities can include antitrust lawsuits, wage

and hour lawsuits, civil rights or product liability lawsuits (SEC, 2018). a In the case of the

selected 10-K Kroger had already determined that these lawsuits had already become class

actions and/or sought substantial damages. Considering the nature of Kroger’s business most of

the case of finding litigation contingent liabilities such as those of Kroger auditors would want

company IRS reports for unsettled income tax liabilities, the review of board of director

meetings where the discussion of current and/or pending lawsuits may have taken place and

review legal expense accounts as the support for any transactions in those accounts could shine

light on contingent liabilities (Garcia, 2017).

References:

20180203x10k.htm