Notes to the Financial Statements
Year ended March 31, 2011
Claims relating to both legal and employee grievances have been made against the Agency in the normal course of operations. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimate of liability is accrued and an expense recorded in the financial statements.
Amounts have been accrued for contingent liabilities as at March 31, 2011 pertaining to legal claims. The amount of the contingent liabilities for legal claims recognized is based on management's best estimate. Other legal claims against the Agency and other defendants include a class action suit related to bovine spongiform encephalopathy (BSE) for which amounts and likelihood of liability are not determinable.
No amounts have been accrued pertaining to employee grievances as at March 31, 2011.
(a) Claims (including legal claims and employee grievances) and litigation
Claims relating to both legal and employee grievances have been made against the Agency in the normal course of operations. Some of these potential liabilities may become actual liabilities when one or more future events occur or fail to occur. To the extent that the future event is likely to occur or fail to occur, and a reasonable estimate of the loss can be made, an estimate of liability is accrued and an expense recorded in the financial statements.
Amounts have been accrued for contingent liabilities as at March 31, 2010 pertaining to legal claims. The amount of the contingent liabilities for legal claims recognized is based on management's best estimate. Other legal claims against the Agency and other defendants include class action suits related to bovine spongiform encephalopathy (BSE) for which amounts and likelihood of liability cannot be determined.
No amounts have been accrued pertaining to employee grievances as at March 31, 2010.
b) Contractual Obligations
The nature of the Agency's activities can result in some large multi-year contracts and agreements whereby the Agency will be obligated to make future payments when the services/goods are received. Significant contractual obligations that can be reasonably estimated are summarized as follows:
| (in thousands of dollars) | 2012 | 2013 | 2014 | 2015 | 2016 and thereafter | Total |
|---|---|---|---|---|---|---|
| Capital Projects | $1,473 | $310 | $- | $- | $- | $1,783 |
| Operating leases | 4,580 | 2,321 | - | - | - | 6,901 |
| Contributions | 1,010 | 960 | 500 | - | - | 2,470 |
| Other agreements | 12,330 | 4,376 | 847 | 508 | 330 | 18,391 |
| Total | $19,393 | $7,967 | $1,347 | $508 | $330 | $29,545 |