Contingent Liabilities: Issues and Practice; Aliona Cebotari; imf working Paper 08/245; October 1, 2008

Table 5. Disclosing the Magnitude of Contingent Liabilities: Selected Country Examples—Part II
 
 
Environmental and Disposal 
Liabilities 
Quasi-fiscal deficit
of CB 
International Organizations 
(callable capital) 
Unquantifiable liabilities 
Implicit Liabilities 
Australia (budget) 
Liabilities of the 
Reserve Bank of 
Australia, guaranteed 
by the government 
Summary background for 
individual unquantifiable liabilities 
(indemnities, native title costs, 
litigations), by ministry 
Canada 
Estimated amount (recognized 
on balance sheet)
Face value of callable capital, 
by international institution, in 
national currency 
Description of large unquantifiable 
legal claims (land claims, legal 
challenges to legislation) 
Chile 

Annual quasi-fiscal 

deficit and capital 
position, with 
discussion of causes 
Measures to stabilize domestic 
fuel prices (reported as implicit 
liabilities, as the state may want 
to intervene if these prices 
increase excessively)
Annual contribution to, 
withdrawals from, and balances 
in the Fuel Price Stabilization 
Funds 
Mention of what would be the 
fiscal cost of a banking crisis of 
the magnitude of the last crisis in 
the 1980s 
New Zealand 
(financial statement) 
Known liabilities recognized on 
balance sheet; potential 
liabilities disclosed in Note 21 
as unquantifiable liabilities 
Face value of uncalled capital 
subscriptions, by international 
institution
Each unquantifiable liability 
described in Note 21to financial 
statements (guarantees, litigations, 
environmental liabilities, other) 
New Zealand (budget) 
Table with the same 
information as in financial 
statements (no descriptions), 
with an indication whether the 
value of the contingent liability 
is "unchanged" or "changed" 
relative to the last financial 
statement
Table on face value of 
uncalled capital (no 
descriptions), with an 
indication whether the value of 
the contingent liability is 
"unchanged" or "changed" 
relative to the last financial 
statement 
Table with list of unquantifiable 
liability (no descriptions), with an 
indication whether the contingent 
liability is "unchanged" or 
"changed" relative to the last 
financial statement
United States 
(financial statements) 
Estimated costs and 
description of nature of 
contingency, with distinction 
between "probable" and 
"reasonably possible" 
contingencies 
Source: Australia: "Statement 11: Statement of Risks", 2007/08 Budget Paper; Canada: Financial Statements, Public Accounts of Canada 2006–2007, Section 11 & Note 
15; Chile: Report on Contingent Liabilities, November 2007; Colombia: Medium-Term Budget Framework 2005, 2006, 2007; New Zealand: Half Year Economic and Fiscal 
Update, 2007 and "Statement of quantifiable contingent liabilities and contingent assets" in the Financial Statements for the year ended 30 June 2007; Peru: Marco 
Macroeconomico Multianual 2008–2010" Mayo 2007; South Africa: 2007 Budget Review, Chapter 5, Asset and Liability Management; United States: Financial Report of 
the United States Government, 2006. 

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