Page 50 - 2012_Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2012
48
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
FINANCIAL INSTRUMENTS (CONTINUED)
Impairment of financial assets (including receivables)
A financial asset not carried at FVTPL is assessed at each reporting date to determine whether there is objective evidence that it is
impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the
asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably.
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying
amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are
recognized in profit or loss in the statement of comprehensive income and reflected in an allowance account against receivables.
Interest on the impaired asset continues to be recognized through the unwinding of the discount. When a subsequent event causes
the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss in the statement of
comprehensive income. An impairment loss is reversed only to the extend that the asset’s carrying amount does not exceed the
carrying amount that would have been determined if no impairment loss had been recognized.
FINANCE COSTS
Finance costs comprise interest expense on borrowings not subject to capitalization, amortization of costs related to borrowings,
interest on finance leases, and impairment losses recognized on financial assets.
4.
SHORT-TERM INVESTMENTS
Short-term investments consist of investments in guaranteed investment certificates. The $52,500 guaranteed investment certificate
earns interest at an annual rate of 1.03% and matures on October 4, 2012. The $200,000 guaranteed investment certificate earns
interest at an annual rate of 1.00% and matures on March 26, 2013.
5.
ACCOUNTS RECEIVABLE
March 31,
March 31,
April 1,
2012
2011
2010
Trade accounts receivable
$ 5,558,358
$ 1,307,746
$ 1,958,785
GST input tax credits receivable
374,203
299,599
51,607
Advances to suppliers, contractors and employees
335,962
318,964
94,743
$ 6,268,523
$ 1,926,309
$ 2,105,135
SIGA’s exposure to credit and currency risks, and impairment losses related to trade and other receivables, is disclosed in Note 20.
6.
INVENTORIES
Inventories totalling $6,016,402 were recognized as food and beverage cost of goods sold for the year ended March 31, 2012
(2011 – $6,172,045). No write-downs of inventories were noted for the year ended March 31, 2012 (2011 – $nil), and there were
no reversals of write-downs from previous years.