ELN » Topics » s Contingencies

This excerpt taken from the ELN 6-K filed Apr 11, 2005.

s    Contingencies

We assess the likelihood of any adverse outcomes to contingencies, including legal matters, as well as the potential range of probable losses. We record provisions for such contingencies when it is probable that a liability will be incurred and the amount of the loss can be reasonably estimated. If an unfavourable outcome is probable, but the amount of the loss cannot be reasonably estimated, we estimate the range of probable loss and provide for the most probable loss within the range. If no amount within the range is deemed more probable, we provide for the minimum amount within the range. If neither a range of loss or a minimum amount of loss is estimable, then appropriate disclosure is given, but no provision is recorded.

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