Page 44 - 2008_2009_Annual_Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year ended March 31, 2009
042
2. Significant Accounting Policies (continued)
Income taxes
SIGA was incorporated under The Non-Profit Corporations Act of Saskatchewan and is not subject to income tax under
the provision of paragraph 149(1)(1) of the Income Tax Act.
SIGA also pays Goods and Services Tax and Provincial Sales Tax to government agencies and claims input tax credits
on its ancillary operations.
Financial instruments
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 fair value. Cost approximates fair value for
these short-term investments. Accounts receivable are classified as loans and receivables and are recorded at amortized
cost. Amortized 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. In order to manage its interest rate risk exposure, SIGA entered into separate interest rate swap
arrangements for the Dakota Dunes, Living Sky and Painted Hand construction projects on December 12, 2007. These
arrangements fixed the interest rates for the loan for each construction project at 4.94%, 5.09% and 5.09% respectively
over the term of the loans.
These interest rate swaps are classified as held-for-trading and are recorded at fair value. SIGA does not have any
outstanding contracts or financial instruments with embedded derivatives that are required to be separately valued.
Regular way purchases and sales of financial assets are accounted for at their trade date.
Recent accounting pronouncements
Effective April 1, 2008, SIGA adopted Canadian Institute of Chartered Accountants (“CICA”) Handbook Sections 3862
– Financial Instruments – Disclosures, and 3863 – Financial Instruments – Presentation. These sections replace the
existing CICA Handbook Section 3861 – Financial Instruments – Presentation and Disclosure. 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. As these standards only address disclosure and presentation requirements, there is no impact
on SIGA’s operating results.
Effective April 1, 2008, SIGA adopted CICA Handbook Section 1535 Capital Disclosures. This section requires disclosure
of information related to the objectives, policies and processes for managing capital, and particularly whether externally
imposed capital requirements have been complied with. As this standard only addresses disclosure requirements, there is
no impact on SIGA’s operating results.
Effective April 1, 2008, SIGA adopted CICA Handbook Section 3031 Inventories. The new recommendations establish
standards for the determination of the cost of inventories and the subsequent recognition as expense, including any
write-down to net realizable value and reversals of previous write-downs for increases to net realizable value. There is
no material impact on SIGA’s operating results as a result of implementing the new recommendation.
In February 2008, the Canadian Accounting Standards Board confirmed that publicly accountable enterprises will
be required to adopt International Financial Reporting Standards (“IFRS”) in place of GAAP for interim and annual
reporting in the fiscal year beginning on or after January 1, 2011, including comparative figures for the prior year.
SIGA has not yet commenced an IFRS conversion project and therefore, the impact on SIGA’s future financial position
and results of operations is not reasonably determinable.