Page 48 - 2012_Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2012
46
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
EMPLOYEE BENEFITS
A defined contribution pension plan is a post-employment benefit plan under which an entity pays fixed contributions into a
separate entity and will have no legal or constructive obligation to pay further amounts. SIGA’s matching contributions to the
defined contribution pension plan for employees are recorded as salaries and benefits expense in the statement of comprehensive
income when services are rendered by employees.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
FOREIGN CURRENCY
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated to SIGA’s functional currency
at the exchange rate at that date. Revenues and expenses are translated at rates of exchange prevailing on the transaction dates.
Translation gains and losses on foreign currency denominated monetary items are taken into income in the current year.
FINANCIAL INSTRUMENTS
Classification and measurement
SIGA classifies its financial instruments into one of the following categories: financial instruments at fair value through profit
or loss (“FVTPL”); loans and receivables; and other liabilities. All financial instruments are measured at fair value on initial
recognition and recorded on the statement of financial position. Measurement in subsequent periods depends on the classification
as described below.
Financial assets are classified as at FVTPL when the financial asset is either held for trading or it is designated as at FVTPL.
A financial asset is classified as held-for-trading if:
It has been acquired principally for the purpose of selling it in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that SIGA manages together and has a recent
actual pattern of short-term profit-taking; or
It is a derivative that is not designated and effective as a hedging instrument.
A financial asset other than a financial asset held-for-trading may be designated as at FVTPL upon initial recognition if:
Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or
The financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its
performance is evaluated on a fair value basis, in accordance with SIGA’s documented risk management or investment strategy,
and information about the gropuing is provided internally on that basis; or
It forms part of a contract containing one or more embedded derivatives, and IAS 39, Financial Instruments: Recognition
and Measurement permits the entire combined contract (asset or liability) to be designated as at FVTPL.
Financial instruments classified as FVTPL are subsequently measured at fair value, with changes in fair value recognized in
comprehensive income. FVTPL include financial instruments held for trading or financial instruments designated upon initial
recognition as FVTPL. Financial instruments are held for trading if they are acquired for the purpose of selling or repurchasing
in the near term. This category includes derivative financial instruments that are not designated as hedging instruments.
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market.
Other financial liabilities are all financial liabilities not recorded at FVTPL.