Page 45 - 2009_2010_Annual_Report

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Saskatchewan Indian Gaming Authority
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NOTES TO THE FINANCIAL STATEMENTS
Year Ended March 31, 2010
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3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
SOFTWARE
Specified intangible assets (software) are recognized and reported apart from goodwill. Intangible assets recognized separately from
goodwill and subject to amortization are recorded at cost and amortized using the straight-line method over one year, based upon
managements’ best estimate of the useful life of the asset.
ASSET IMPAIRMENT
SIGA reviews both long-lived assets to be held and used and identifiable intangible assets with finite lives whenever events
or changes in circumstances indicate that the carrying amount of such assets may not be fully recoverable. Determination of
recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual
disposition. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management
expects to hold and use is based on the fair value of the assets, whereas such assets to be disposed of are reported at the lower
of carrying amount or fair value less costs to sell.
SLOT AND TABLE REVENUES
Slot and table revenues represent the net win from those gaming activities calculated as the difference between amounts wagered
and prizes paid by the casino. Slot and table revenues are net of accruals for anticipated payouts of progressive jackpots.
COMMITMENT OF NET PROCEEDS OF TABLE OPERATIONS
Liabilities are recorded when amounts to be distributed are approved by the Board of Directors.
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 its percentage of casino slot net income net 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.