Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally



Note 10: Contingent Liabilities and Assets

  Guarantees Claims for 
damages or costs
Total
  2011
$’000
2010
$’000
2011
$’000
2010
$’000
2011
$’000
2010
$’000
Contingent assets            
      Balance from previous period - - 101 1,108 101 1,108
      New - - - 92 - 92
      Re-measurement - - - - - -
      Assets recognised - - - (15) - (15)
      Expired - - (89) (1,084) (89) (1,084)
Total contingent assets - - 12 101 12 101
             
Contingent liabilities            
      Balance from previous period 134 426 1,011 1,193 1,145 1,619
      New - - - 408 - 408
      Re-measurement (6) (31) (39) (361) (45) (392)
      Liabilities recognised - - (399) (60) (399) (60)
      Obligations expired (3) (261) (32) (169) (35) (430)
Total contingent liabilities 125 134 541 1,011 666 1,145
Net contingent assets (liabilities) (125) (134) (529) (910) (654) (1,044)

 

Quantifiable Contingencies

The Schedule of Contingencies reports contingent liabilities in respect of claims for damages / costs of $540,959 (2010: $1,010,837).  This amount represents an estimate of the Department's liability based on precedent cases and on advice from the Department's external legal service providers.  The Department is defending the claims.

The Schedule of Contingencies reports contingent liabilities in respect of bank and residential lease guarantees made by the department of $125,014 (2010: $133,504).

The Schedule also reports contingent assets in respect of claims for damages / costs of $12,580 (2010: $101,494).  The Department is expecting to succeed in claims and receive costs from claimants, although the cases are continuing.  The estimate is based on precedent in such cases and on advice from the Department’s external legal service providers.

Unquantifiable Contingencies

At 30 June 2011, the Department was involved in a number of litigation matters for losses allegedly suffered by claimants.  The Department is defending the claims.  It is not possible to estimate the amounts of any eventual payments that may be required in relation to these claims.

Significant Remote Contingencies

The Department is currently defending a number of other legal claims.  At 30 June 2011, advice from the Department’s external legal service providers is that the Department has a strong case in each of these matters and is not likely to be found liable.

 

 

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