SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                Date of Report (Date of earliest event reported):
                                OCTOBER 29, 2002


                              KANSAS CITY SOUTHERN
                              --------------------
               (Exact name of company as specified in its charter)


          DELAWARE                    1-4717                   44-0663509
-----------------------------  --------------------    -------------------------
(State or other jurisdiction     (Commission file          (IRS Employer
      of incorporation)               number)            Identification Number)


                427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105

               (Address of principal executive offices) (Zip Code)


                COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE:
                                (816) 983 - 1303

                                 NOT APPLICABLE

          (Former name or former address if changed since last report)









<PAGE>



ITEM 5.          OTHER EVENTS

KANSAS CITY SOUTHERN ANNOUNCES VAT ACCOUNTING POSITION.

On October 11, 2002,  Grupo TMM, S.A.  ("Grupo  TMM") and Kansas City  Southern,
("KCS"),  owners through Grupo Transportacion  Ferroviaria Mexicana, S.A. de C.V
("Grupo  TFM")  of the  controlling  interest  in TFM,  S.A.  de  C.V.  ("TFM"),
announced  a favorable  ruling on TFM's  value  added tax claim,  which has been
pending in the Mexican Courts since 1997. On October 24, 2002, Grupo TMM and KCS
issued a press  release  providing  additional  information  about  the VAT suit
ruling.  On October 29,  2002,  KCS issued a press  release  stating  that after
reviewing  the matter  further,  TFM had  concluded  that it is  appropriate  to
reflect the  recovery  of the VAT claim in TFM's  financial  statements  for the
period ended September 30, 2002. Despite this action by TFM, KCS does not intend
to reflect any  recovery  on the VAT refund  claim in its  financial  statements
until after the conclusion of the legal process.  See the Press Release attached
hereto as Exhibit 99.1 for further details.

ITEM 7.          FINANCIAL STATEMENTS AND EXHIBITS

(c)              Exhibits

                 EXHIBIT NO.              DOCUMENT

                 (99)                     Additional Exhibits

                 99.1                     Press Release issued by Kansas City
                                          Southern dated October 29, 2002
                                          entitled, "Kansas City Southern
                                          Announces VAT Accounting Position," is
                                          attached hereto as Exhibit 99.1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  Report  to be signed  on its  behalf by the  undersigned
hereunto duly authorized.

                                          Kansas City Southern

Date: October 31, 2002                 By:         /S/  LOUIS G. VAN HORN
                                          --------------------------------------
                                                      Louis G. Van Horn
                                               Vice President and Comptroller
                                               (Principal Accounting Officer)


<PAGE>


EXHIBIT 99.1

KANSAS CITY SOUTHERN                                               PRESS RELEASE
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105               NYSE SYMBOL: KSU


Date:          October 29, 2002

Media Contact: William H. Galligan 816/983-1551
               william.h.galligan@kcsr.com

Kansas City Southern Announces VAT Accounting Position

Kansas City Southern (NYSE:  KSU) announced  previously (on October 11, 2002 and
on October 24, 2002),  in joint press releases with Grupo TMM, S.A.  ("TMM"),  a
favorable  court  ruling  in Mexico on a value  added  tax  ("VAT")  claim of an
affiliated company,  TFM, S.A. de C.V. ("TFM").  In those releases,  the parties
indicated  that,  while they were optimistic  about the ultimate  outcome of the
matter,  the recovery,  including its timing and final amount,  would have to be
determined after the conclusion of the legal process.

Kansas City  Southern  has been advised by TFM that after  reviewing  the matter
further, TFM has concluded that it is appropriate to reflect the recovery on the
VAT claim in its financial  statements for the period ended  September 30, 2002.
In TFM's  Report of  Operations,  released  today,  TFM has  recorded,  as Other
Income,  an amount that includes $534.4 million for the after-tax  effect of the
VAT refund.

Despite this action by TFM,  Kansas City Southern does not intend to reflect any
recovery on the VAT refund claim in Kansas City Southern's  financial statements
for the period  ended  September  20,  2002.  It is taking  this  action for the
reasons set forth in the press releases referred to above.  Kansas City Southern
does not believe it to be  appropriate  to recognize  this gain on its financial
statements at this time.

Kansas  City   Southern  owns   approximately   36.9%  of  the  stock  of  Grupo
Transportacion  Ferroviaria  Mexicana,  S.A. de C.V. ("Grupo TFM"), TFM's parent
company,  and Kansas City Southern  includes its equity in the earnings of Grupo
TFM in its consolidated statements of income.

KCS IS COMPRISED OF, AMONG  OTHERS,  THE KANSAS CITY  SOUTHERN  RAILWAY  COMPANY
("KCSR")  AND EQUITY  INVESTMENTS  IN GRUPO TFM,  SOUTHERN  CAPITAL  CORPORATION
("SOUTHERN CAPITAL") AND PANAMA CANAL RAILWAY COMPANY ("PCRC").

THIS PRESS  RELEASE  INCLUDES  STATEMENTS  CONCERNING  POTENTIAL  FUTURE  EVENTS
INVOLVING  THE  COMPANY,  WHICH  COULD  MATERIALLY  DIFFER  FROM THE EVENTS THAT
ACTUALLY OCCUR. THE DIFFERENCES COULD BE CAUSED BY A NUMBER OF FACTORS INCLUDING
THOSE  FACTORS  IDENTIFIED  IN  COMPANY'S  DECEMBER  31,  2001 FORM 10-K AND THE
CURRENT  REPORT ON FORM 8-K DATED  DECEMBER 11, 2001,  EACH FILED BY THE COMPANY
WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  ("SEC")  (COMMISSION  FILE NO.
1-4717).  THE COMPANY  WILL NOT UPDATE ANY  FORWARD-LOOKING  STATEMENTS  IN THIS
PRESS RELEASE TO REFLECT FUTURE EVENTS OR DEVELOPMENTS.
[{"type": "8-K", "sequence": "1", "filename": "vatactgpos8k.txt", "secsgml_size_bytes": 6516}]
{"company-data": {"conformed-name": "KANSAS CITY SOUTHERN", "cik": "0000054480", "assigned-sic": "4011", "irs-number": "440663509", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-04717", "film-number": "02804909"}, "business-address": {"street1": "427 WEST 12TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105", "phone": "8169831303"}, "mail-address": {"street1": "427 WEST 12TH STREET", "city": "KANSAS CITY", "state": "MO", "zip": "64105"}, "former-company": {"former-conformed-name": "KANSAS CITY SOUTHERN INDUSTRIES INC", "date-changed": "19920703"}}
SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934

                Date of Report (Date of earliest event reported):
                                OCTOBER 29, 2002

                              KANSAS CITY SOUTHERN
                              --------------------
               (Exact name of company as specified in its charter)

          DELAWARE                    1-4717                   44-0663509
-----------------------------  --------------------    -------------------------
(State or other jurisdiction     (Commission file          (IRS Employer
      of incorporation)               number)            Identification Number)

                427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105

               (Address of principal executive offices) (Zip Code)

                COMPANY'S TELEPHONE NUMBER, INCLUDING AREA CODE:
                                (816) 983 - 1303

                                 NOT APPLICABLE

          (Former name or former address if changed since last report)
ITEM 5.          OTHER EVENTS

KANSAS CITY SOUTHERN ANNOUNCES VAT ACCOUNTING POSITION.

On October 11, 2002,  Grupo TMM, S.A.  ("Grupo  TMM") and Kansas City  Southern,
("KCS"),  owners through Grupo Transportacion  Ferroviaria Mexicana, S.A. de C.V
("Grupo  TFM")  of the  controlling  interest  in TFM,  S.A.  de  C.V.  ("TFM"),
announced  a favorable  ruling on TFM's  value  added tax claim,  which has been
pending in the Mexican Courts since 1997. On October 24, 2002, Grupo TMM and KCS
issued a press  release  providing  additional  information  about  the VAT suit
ruling.  On October 29,  2002,  KCS issued a press  release  stating  that after
reviewing  the matter  further,  TFM had  concluded  that it is  appropriate  to
reflect the  recovery  of the VAT claim in TFM's  financial  statements  for the
period ended September 30, 2002. Despite this action by TFM, KCS does not intend
to reflect any  recovery  on the VAT refund  claim in its  financial  statements
until after the conclusion of the legal process.  See the Press Release attached
hereto as Exhibit 99.1 for further details.

ITEM 7.          FINANCIAL STATEMENTS AND EXHIBITS

(c)              Exhibits

                 EXHIBIT NO.              DOCUMENT

                 (99)                     Additional Exhibits

                 99.1                     Press Release issued by Kansas City
                                          Southern dated October 29, 2002
                                          entitled, "Kansas City Southern
                                          Announces VAT Accounting Position," is
                                          attached hereto as Exhibit 99.1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  Report  to be signed  on its  behalf by the  undersigned
hereunto duly authorized.

                                          Kansas City Southern

Date: October 31, 2002                 By:         /S/  LOUIS G. VAN HORN
                                          --------------------------------------
                                                      Louis G. Van Horn
                                               Vice President and Comptroller
                                               (Principal Accounting Officer)
EXHIBIT 99.1

KANSAS CITY SOUTHERN                                               PRESS RELEASE
427 WEST 12TH STREET, KANSAS CITY, MISSOURI 64105               NYSE SYMBOL: KSU

Date:          October 29, 2002

Media Contact: William H. Galligan 816/983-1551
               william.h.galligan@kcsr.com

Kansas City Southern Announces VAT Accounting Position

Kansas City Southern (NYSE:  KSU) announced  previously (on October 11, 2002 and
on October 24, 2002),  in joint press releases with Grupo TMM, S.A.  ("TMM"),  a
favorable  court  ruling  in Mexico on a value  added  tax  ("VAT")  claim of an
affiliated company,  TFM, S.A. de C.V. ("TFM").  In those releases,  the parties
indicated  that,  while they were optimistic  about the ultimate  outcome of the
matter,  the recovery,  including its timing and final amount,  would have to be
determined after the conclusion of the legal process.

Kansas City  Southern  has been advised by TFM that after  reviewing  the matter
further, TFM has concluded that it is appropriate to reflect the recovery on the
VAT claim in its financial  statements for the period ended  September 30, 2002.
In TFM's  Report of  Operations,  released  today,  TFM has  recorded,  as Other
Income,  an amount that includes $534.4 million for the after-tax  effect of the
VAT refund.

Despite this action by TFM,  Kansas City Southern does not intend to reflect any
recovery on the VAT refund claim in Kansas City Southern's  financial statements
for the period  ended  September  20,  2002.  It is taking  this  action for the
reasons set forth in the press releases referred to above.  Kansas City Southern
does not believe it to be  appropriate  to recognize  this gain on its financial
statements at this time.

Kansas  City   Southern  owns   approximately   36.9%  of  the  stock  of  Grupo
Transportacion  Ferroviaria  Mexicana,  S.A. de C.V. ("Grupo TFM"), TFM's parent
company,  and Kansas City Southern  includes its equity in the earnings of Grupo
TFM in its consolidated statements of income.

KCS IS COMPRISED OF, AMONG  OTHERS,  THE KANSAS CITY  SOUTHERN  RAILWAY  COMPANY
("KCSR")  AND EQUITY  INVESTMENTS  IN GRUPO TFM,  SOUTHERN  CAPITAL  CORPORATION
("SOUTHERN CAPITAL") AND PANAMA CANAL RAILWAY COMPANY ("PCRC").

THIS PRESS  RELEASE  INCLUDES  STATEMENTS  CONCERNING  POTENTIAL  FUTURE  EVENTS
INVOLVING  THE  COMPANY,  WHICH  COULD  MATERIALLY  DIFFER  FROM THE EVENTS THAT
ACTUALLY OCCUR. THE DIFFERENCES COULD BE CAUSED BY A NUMBER OF FACTORS INCLUDING
THOSE  FACTORS  IDENTIFIED  IN  COMPANY'S  DECEMBER  31,  2001 FORM 10-K AND THE
CURRENT  REPORT ON FORM 8-K DATED  DECEMBER 11, 2001,  EACH FILED BY THE COMPANY
WITH  THE  SECURITIES  AND  EXCHANGE  COMMISSION  ("SEC")  (COMMISSION  FILE NO.
1-4717).  THE COMPANY  WILL NOT UPDATE ANY  FORWARD-LOOKING  STATEMENTS  IN THIS
PRESS RELEASE TO REFLECT FUTURE EVENTS OR DEVELOPMENTS.