Page 45 - 2012_Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2012
43
3.
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all years presented in these financial statements and in
preparing the opening IFRS statement of financial position at April 1, 2010 for the purposes of the transition to IFRS. The following
is a summary of significant accounting policies:
CASH AND CASH EQUIVALENTS
Cash and cash equivalents includes cash and certain short-term investments. The short-term investments included in cash and cash
equivalents are highly liquid investments with an original maturity of less than three months.
SHORT-TERM INVESTMENTS
Short-term investments include any investments that have a term of more than three months, but less than one year from the
statement of financial position date.
ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS
Management evaluates collectability of receivables depending on the customer and the nature of the balance. Collectability of
receivables is reviewed and the allowance for doubtful accounts is adjusted quarterly if required. Account balances are charged
to comprehensive income when management determines that it is probable that the receivable will not be collected.
INVENTORIES
Inventories are valued at the lower of cost and net realizable value. The cost of inventories is determined using the most recent cost.
Net realizable value is the estimated selling price in the ordinary course of business less all estimated costs to make the sale.
PROPERTY AND EQUIPMENT
Property and equipment are recorded at cost less accumulated depreciation and accumulated impairment losses, if any. Cost
includes expenditures that are directly attributable to the acquisition of the asset. When parts of an item of property and equipment
have different useful lives, they are accounted for as separate items (major components) of property and equipment. Borrowing costs
directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use or sale, are added to the costs of those assets. SIGA ceases to
capitalize borrowing costs when substantially all the activities necessary to prepare the qualifying asset for its intended use are
complete.
Depreciation is recorded in the accounts on a straight-line basis commencing when they are available for use, at rates expected to
depreciate 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
Furniture & equipment
4-5 years
Depreciation methods and useful lives are reviewed at each financial year end and adjusted prospectively, if appropriate.
When property and equipment are disposed of or retired, the related costs less accumulated depreciation are de-recognized. The
gain or loss arising on the disposal or retirement of an item of property and equipment is determined as the difference between the
sales proceeds less costs of removal and the carrying amount of the asset. The gain or loss on asset disposals and retirements is
recognized in other revenue or expenses.