Page 44 - 2009_2010_Annual_Report

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Saskatchewan Indian Gaming Authority
NOTES TO THE FINANCIAL STATEMENTS
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Year Ended March 31, 2010
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2. CHANGE IN ACCOUNTING POLICIES (CONTINUED)
FINANCIAL INSTRUMENTS – DISCLOSURES (CONTINUED)
Effective for its fiscal year ended March 31, 2010, SIGA adopted the CICA’s new recommendations for disclosures relating to liquidity
risk. Section 3862 Financial Instruments – Disclosures has been amended to require enhanced disclosures for liquidity risk in response
to current market conditions. SIGA is required to disclose maturity analysis for derivative and non-derivative financial liabilities based
on how SIGA manages its liquidity risk. As a result of adopting this amendment, new disclosure is provided in Note 19.
The adoption of these amendments did not have a material impact on SIGA’s financial statements.
GOODWILL AND INTANGIBLE ASSETS
Effective for its fiscal year ended March 31, 2010, SIGA adopted CICA Handbook Section 3064, Goodwill and Intangible Assets
which replaces Section 3062, Goodwill and Other Intangible Assets and resulted in the withdrawal of Section 3450, Research and
Development Costs. Section 3064 provides guidance on the criteria that must be satisfied in order for an intangible asset to be
recognized, including internally developed intangible assets. As a result of adopting Section 3064, SIGA has reclassified software
from capital assets to software on the Balance Sheet. The adoption of Section 3064 did not impact the corresponding amortization
recorded in the Schedule of General and Administrative Expenses on the Statement of Gaming Operations.
3. SIGNIFICANT ACCOUNTING POLICIES
These financial statements have been prepared in accordance with Canadian generally accepted accounting principles (“GAAP”).
The following is a summary of significant accounting policies:
INVENTORY
Inventory is recorded at the lower of cost and net realizable value. The cost of inventory is determined using the most recent cost.
FOREIGN CURRENCY
Monetary assets and liabilities denominated in foreign currencies are translated at the year-end exchange rates. Revenues and
expenses are translated at rates of exchange prevailing on the transaction dates. Translation gains and losses on foreign currency
denominated monetary items are taken into income in the current year.
CAPITAL ASSETS
Capital assets are recorded on the balance sheet at cost. Amortization is recorded in the accounts on a straight-line basis
commencing in the month the asset is put in use, at rates expected to amortize the cost of the assets over their estimated
useful lives as follows:
Asset
Rate
Leasehold improvements
lesser of the useful life of the asset and term of the lease
Casino development
term of the lease
Office furniture and equipment
5 years
Security equipment
5 years
Signage and interior design
5 years
Gaming tables and equipment
5 years
Restaurant equipment
5 years
Coin handling equipment
5 years
Automobiles
4 years
Office module
5 years
Computer equipment
5 years
Artwork
5 years