Page 64 - 2007_2008_Annual_Report

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SASKATCHEWAN INDIAN GAMING AUTHORITY
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2. Significant accounting policies – continued:
(f) Allocation of expenses:
(i) Table operations
Costs allocated to table operations include actual direct expenses, and an allocation of indirect
site expenses based on the percentage of gross table revenue to total revenue on an individual
casino site basis.
Central office costs are allocated to table operations based on a percentage of gross table
revenue to total revenue. These central office costs are then allocated to each casino site based
on the percentage of each casino site’s table net income to all casinos’ table net income before
the allocation of indirect site expenses.
(ii) Slot machine operations
Costs allocated to slot machine operations include actual direct expenses, and an allocation
of indirect site expenses based on the percentage of gross slot revenue to total revenue on
an individual casino site basis.
All remaining central office costs net of table games and ancillary allocations are allocated
to slot operations. These central office costs are then allocated to each casino site based on
the percentage of each casino site’s slot net income to all casinos’ slot net income before the
allocation of indirect site expenses.
(iii) Ancillary operations
Costs allocated to ancillary operations include actual direct expenses, and an allocation of indirect
site expenses based on the percentage of gross ancillary revenue to total revenue on an individual
casino site basis.
Central office costs are allocated to ancillary operations based on a percentage of gross ancillary
revenue to total revenue. These central office costs are then allocated to each casino site based
on the percentage of each casino site’s ancillary net income to all casinos’ ancillary net income
before the allocation of indirect site expenses.
(g) Promotional allowance:
SIGA offers a customer loyalty program to its patrons. As part of the program, members accumulate
points based on amounts wagered on slot machines. Members can redeem their points for cash.
SIGA records the points accumulated as a liability and a promotional allowance.
(h) Pension expenses:
SIGA’s matching contributions to the defined contribution pension plan for employees are recorded
as expenses are incurred.
(i) Short-term investments:
Short-term investments consist of investments in a Canadian money market fund and a guaranteed
investment certificate. The guaranteed investment certificate earns interest at an annual rate of 4.1%
and matures on May 28, 2008.
S A S K A T C H E WA N I N D I A N G A M I N G A U T H O R I T Y I N C .
Notes to the Consolidated Financial Statements
Year ended March 31, 2008