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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 13: Contingent Liabilities and Assets

 
Guarantees
Claims for 
damages or costs
Total
 
2010
$'000
2009
$'000
2010
$'000
2009
$'000
2010
$'000
2009
$'000
Contingent assets            
Balance from previous period  -  - 1,108 512 1,108 512
New  -  - 92  - 92  -
Re-measurement  -  -  - 638  - 638
Assets recognised  -  - (15) (42) (15) (42)
Expired  -  - (1,084)  - (1,084)  -
Total contingent assets  -  - 101 1,108 101 1,108
 
Contingent liabilities            
Balance from previous period 426 431 1,193 691 1,619 1,122
New  -  - 408 729 408 729
Re-measurement (31) 3 (361) 3 (392) 6
Liabilities recognised  -  - (60) (230) (60) (230)
Obligations expired (261) (8) (169)  - (430) (8)
Total contingent liabilities 134 426 1,011 1,193 1,145 1,619
Net contingent assets (liabilities) (134) (426) (910) (85) (1,044) (511)

Quantifiable Contingencies

The Schedule of Contingencies reports contingent liabilities in respect of claims for damages / costs of $1,010,837 (2009: $1,193,210).  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 $133,504 (2009: $426,411).

The Schedule also reports contingent assets in respect of claims for damages / costs of $101,494 (2009: $1,107,868).  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 2010, the Department was defending a number of litigation claims in relation to losses allegedly suffered by claimants.  In addition, the Department has a number of pending insurance claims in which a relaible estimate is not available.

Significant Remote Contingencies

The Department is currently defending a number of other legal claims. At 30 June 2010, 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.

Next page: Note 14: Senior Executive Remuneration
Previous page: Note 12: Cash Flow Reconciliation

Department of Foreign Affairs and Trade