Page 57 - SIGA_2010-11 Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
Year Ended March 31, 2011
55
18. FINANCIAL RISK MANAGEMENT (CONTINUED)
The following summarizes the contractual maturities of SIGA’s financial liabilities as at March 31, 2011:
Contractual cash flows
Carrying
0 - 12
1 - 2
3 - 5
More than
Financial Liabilities
Amount
months
years
years
5 years
Total
Due to SLGA
$ 46,136,295 $ 46,136,295 $
– $
– $
– $ 46,136,295
Accounts payable and
accrued liabilities
19,036,659 19,036,659
19,036,659
Long-term debt
68,220,022
9,091,190
8,822,670 77,596,074
95,509,934
Capital lease obligation
45,522,128
6,471,046
6,471,046 19,413,137 76,738,887 109,094,115
Interest rate swap liability
5,147,896
5,147,896
5,147,896
$ 184,063,000 $ 80,735,190 $ 15,293,716 $ 97,009,211 $ 81,886,783 $ 274,924,899
Management believes its ability to generate funds will be adequate to support these financial liabilities.
19. FAIR VALUE OF FINANCIAL INSTRUMENTS
ESTABLISHING FAIR VALUE
The fair value of cash, accounts receivable, due to SLGA, and accounts payable and accrued liabilities approximates their carrying
values due to their short-term maturity.
The fair value of short-term investments is based on quoted bid prices.
The fair value of derivative instruments is calculated using pricing models that incorporate current market prices and the contractual
prices of the underlying instruments, the time value of money and yield curves.
The fair value of long-term debt is addressed in Note 11.
FAIR VALUE HIERARCHY
The following table presents the financial instruments recorded at fair value in the balance sheet, classified using the fair value
hierarchy described in Note 2:
Total financial
assets and
financial
liabilities at
Level 1
Level 2
Level 3
fair value
Financial assets
Cash
$ 23,615,312
$
$
– $ 23,615,312
Short-term investments
30,852,377
30,852,377
Total financial assets
$ 54,467,689
$
$
– $ 54,467,689
Financial liabilities
Interest rate swap liability
$
$ 5,147,896
$
– $ 5,147,896
Total financial liabilities
$
$ 5,147,896
$
– $ 5,147,896
During the year, there has been no significant transfer of amounts between Level 1 and Level 2.