The above table contains $30,000 of contingent liabilities disclosed in respect to claims for damages/costs (2018: $34,000). The amount represents an estimate of the Group’s liability based on precedent cases. The Northern Land Council (NLC) is defending the claims.
The nature of decisions of the NLC mean that at times the decisions are subject to dispute and judicial review. Specific information about legal matters is not disclosed where the information would be prejudicial to the NLC.
Estimates of potential financial effect of contingent liabilities that may become payable
In the year ended 30 June 2018, Northern Aboriginal Investment Corporation Pty Ltd (NAIC) was named defendant in a court case. The Directors were confident that the claim would be successfully defended. This case was settled during the financial year 2018-19 and no contingent liability exists as at 30 June 2019.
Contingent liabilities and contingent assets are not recognised in the statement of financial position but are reported in notes. They may arise from uncertainty as to the existence of a liability or asset or represent an asset or liability in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain and contingent liabilities are disclosed when settlement is greater than remote.