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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 10: Contingent Assets and Liabilities

Guarantees
Claims for damages or costs
Total
2012
2011
2012
2011
2012
2011
$’000
$’000
$’000
$’000
$’000
$’000
Contingent assets
Balance from previous period
-
-
12
101
12
101
New contingent assets recognised
-
-
-
-
-
-
Re-measurement
-
-
-
-
-
-
Assets recognised
-
-
-
-
-
-
Expired
-
-
(12)
(89)
(12)
(89)
Total contingent assets
-
-
-
12
-
12
Contingent liabilities
Balance from previous period
125
134
541
1,011
666
1,145
New
-
-
-
-
-
-
Re-measurement
(11)
(6)
(8)
(39)
(19)
(45)
Liabilities recognised
-
-
-
(399)
-
(399)
Obligations expired
-
(3)
(136)
(32)
(136)
(35)
Total contingent liabilities
114
125
397
541
511
666
Net contingent assets (liabilities)
(114)
(125)
(397)
(529)
(511)
(654)
Quantifiable Contingencies
The Schedule of Contingencies reports contingent liabilities in respect of claims for damages/costs of $396,967 (2011: $540,959). 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 $113,618 (2011: $125,014).
The Schedule also reports contingent assets in respect of claims for damages/costs of $0 (2011: $12,580). 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 2012, 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 2012, 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.

Department of Foreign Affairs and Trade