Part 4: Financial Statements – HTML version
Notes to and forming part of the Financial Statements
Note 14: Contingent Liabilities and Assets
Quantifiable Contingencies
The Schedule of Contingencies reports contingent liabilities in respect of claims for damages/costs of $298,000 (2003: $200,000). This amount represents an estimate of the Department's liability based on precedent cases. The Department is defending the claims.
The Schedule of Contingencies also reports contingent assets in respect of claims for damages/costs of $232,000 (2003: $218,000). The Department is expecting to suceed in claims against suppliers although the cases are continuing. The contingent asset is an estimate of the possible and likely probability of success based on precedent in such cases.
The Schedule reports an indemnity of $100,000 (2003: $100,000) in relation to the Household, Income and Labour Dynamics in Australia (HILDA) Survey in which each party indemnifies.
Unquantifiable Contingencies
At 30 June 2004, the Department is in the process of isolating an asset to take over a lien, however the value of the contingent asset was not quantifiable.The Department has a number of claims against suppliers at 30 June where it is not possible to estimate the amount of the claims.
Remote Contingencies
The Department has remote contingencies which are not expected to eventuate due to the nature of the cases. The remote classification is based on precedent.