"COP don't have to acknowledge this potential liability at this time as it will only be an issue in the event of a) losing the arbitration case and b) unsuccessfully negotiating an outcome with FAR/WPL. They, of course, have sufficient legal advice to support their claim that FAR's case is without merit and hence do not have to consider this as a contingent liability."
The accounting requirements for disclosure (by way of a note in the financial statements) of contingent liabilities (COP) and contingent assets (FAR) include the words "remote" (cont lias) and "virtually certain" (cont assets),
Thus, COPs legal advice must have concluded that the possibility of the potentially liability arising is remote.
And FAR's legal advice must have concluded that the possibility of the potentially asset being realised is not virtually certain.
(IAS 37 and AASB 137)
So, although the lawyers often get it wrong, I think that PE is a bit of a lotto ticket. Long odds at best.
And irrespective of what FAR or anybody else say there is always a possibility of a settlement at any time. Come on down, the price is right....
On the other hand:
SNE - 99% COS imo
Samo - great chance
Gambia - great potential
Great to see 10c and 10.5c. Maybe the "smarties" (we'll never see 10c again?) are covering their shorts now. That acrid smell is not coming from Jackson's conquistador especiales. Still four months to go before the SAMO truth detector starts to spin though so we could easily retrace in the short term.
We are looking good (as the bishop said to the actress as they looked at the ceiling mirror)
(20min delay)