Page 65 - 2007_2008_Annual_Report

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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
2. Significant accounting policies – continued:
(j) Use of estimates:
The preparation of financial statements in accordance with Canadian generally accepted accounting
principles requires management to make estimates that affect the reported value of assets and
liabilities and the disclosure of contingent liabilities and commitments at the date of the financial
statements and the amounts of revenues and expenses for the year then ended. The most significant
estimates are related to the physical and economic lives of capital assets. Actual results could differ
from those estimates.
(k) Financial instruments:
Effective April 1, 2007, SIGA adopted the recommendations of the Canadian Institute of Chartered
Accountants (CICA) Handbook Section 3855 – Financial Instruments – Recognition and Measurement.
Under these new standards, all financial assets and financial liabilities must be identified and classified.
This classification determines how each financial instrument is measured. This change in accounting
policy did not have a significant impact on SIGA’s financial statements at the time of adoption.
Financial assets and financial liabilities are initially recognized at fair value and their subsequent
measurement is dependent on their classification as described below.
Cash is classified as held-for-trading and is recorded at fair value. Short-term investments are classified
as held-for-trading and are recorded at cost. Accounts receivable are classified as loans and receivables
and are recorded at amortized cost. Cost approximates fair value due to the short-term nature of
these instruments.
Accounts payable and accrued liabilities are classified as other liabilities and are recorded at amortized
cost. Due to SLGA is classified as other liabilities and is recorded at amortized cost. Amortized cost
approximates fair value due to the short-term nature of these instruments. Long-term debt is classified
as other liabilities and is recorded at amortized cost. Fair value information is disclosed in Note 10.
SIGA does not have any outstanding contracts or financial instruments with embedded derivatives
that are required to be separately valued.
(l) Recent accounting pronouncements:
Effective April 1, 2008, SIGA will be required to adopt CICA Handbook Sections 3862 – Financial
Instruments – Disclosures, and 3863 – Financial Instruments – Presentation. Section 3862 provides
standards for disclosure of the risks arising from financial instruments to which SIGA is exposed, and
how the risks are managed by SIGA. Section 3863 provides standards for the presentation of financial
instruments and non-financial instrument derivatives. SIGA does not expect the adoption of these
new standards to have a material impact on its financial statements.