Page 47 - 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
45
3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
FAIR VALUE OF FINANCIAL INSTRUMENTS
The fair value of a financial instrument is the amount of consideration that would be agreed upon in an arm’s length transaction
between knowledgeable, willing parties who are under no compulsion to act. Fair values are determined by reference to quoted bid
or asking prices in an active market. In the absence of an active market, SIGA determines fair value based on internal or external
valuation models, such as discounted cash flow analysis or using observable market based inputs (bid and ask price) for instruments
with similar characteristics and risk profiles.
SIGA classifies fair value measurements recognized in the balance sheet using a three-tier fair value hierarchy, which prioritizes
the inputs used in measuring fair value as follows:
Level 1 – valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – valuation techniques based on inputs other than quoted prices included in Level 1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
Level 3 – valuation techniques using inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
Fair value measurements are classified in the fair value hierarchy based on the lowest level input that is significant to that fair value
measurement. This assessment requires judgment, considering factors specific to an asset or a liability and may affect placement
within the fair value hierarchy.
RECENT ACCOUNTING PRONOUNCEMENTS
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.
4. INVENTORY
Inventory totalling $6,711,570 was recognized as cost of sales for the year ended March 31, 2010 (2009 – $6,239,509).
No write-downs of inventories were noted for the year ended March 31, 2010 (2009 – $nil), and there were no reversals
of write-downs from previous years.
5. UNCOMMITTED NET PROCEEDS OF TABLE OPERATIONS
The Casino Operating Agreement provides for SIGA to use any net income from the operation of licensed table games for charitable
or religious objects or purposes. Distributions of funds were made during the year as follows:
2010
2009
Balance, beginning of year
$
$
Net loss from table operations (Note 16)
(3,755,229)
(2,066,267)
(3,755,229)
(2,066,267)
Net loss from table operations allocated to slot operations
3,755,229
2,066,267
Amounts disbursed
Balance, end of year
$
$