Page 43 - 2008_2009_Annual_Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year ended March 31, 2009
041
2. Significant Accounting Policies (continued)
Allocation of expenses
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.
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.
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.
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.
Pension expenses
SIGA’s matching contributions to the defined contribution pension plan for employees are recorded as expenses
are incurred.
Short-term investments
Short-term investments consist of investments in a Canadian money market fund and two guaranteed investment
certificates. The first guaranteed investment certificate earns interest at an annual rate of 2.75% and matures on
October 2, 2009. The second guaranteed investment certificate earns interest at an annual rate of 1.01% and matures
on March 25, 2010.
Use of estimates
The preparation of financial statements in accordance with GAAP 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. Significant items subject
to estimates include the carrying amounts of capital assets and underlying estimations of useful lives, certain accrued
liabilities, and the derivative liability. Actual results could differ from those estimates.