Description: The Ontario Court of Appeal has ruled Subway can proceed with its $210 million legal action against the CBC. In a broadcast aired in 2017, CBC’s “Marketplace” stated that genetic tests performed at Trent University concluded that close to 50% of the DNA in Subway’s chicken sandwiches was actually soy DNA. Subway has countered the tests were flawed and that CBC’s actions have harmed the business.
Date: January 19, 2021
1) Had you heard about this controversy?
2) Are you a regular Subway customer? Does this story impact your habits?
3) In Wiley’s Financial Accounting: Tools for Business Decision-Making, the section starting at the bottom of page 10-9 deals with provisions and contingent liabilities. What issues would a company consider in determining how to disclose a major lawsuit in its financial statements?