Question
Disclosure Note 19 discusses Targets accounting for contingencies. a. What is Targets approach for accruing losses for litigation claims associated with the data breach? Is
Disclosure Note 19 discusses Targets accounting for contingencies. |
a. What is Targets approach for accruing losses for litigation claims associated with the data breach? Is their approach appropriate? |
b. Target experienced a data breach in 2013, when an intruder stole certain payment card and other guest information from our network. Target recorded a contingent liability for litigation associated with the data breach at that time, and continues to update that liability over time based on new information. Related new expenses for fiscal 2017 totaled $5 million. Prepare a journal entry to record Targets recognition of new expenses associated with the data breach litigation. |
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