Page 46 - SIGA_2010-11 Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year Ended March 31, 2011
44
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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
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.