Page 63 - 2012_Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2012
61
23. COMMITMENTS AND CONTINGENCIES (CONTINUED)
CAPITAL COMMITMENT – SLOT MACHINES
The Casino Operating Agreement requires SLGA to supply slot machines and the slot management system to SIGA for use in its
casinos and for SIGA to reimburse to SLGA the cost of these machines over the estimated useful life of the equipment. Included
in expenses is $12,574,280 (2011 – $12,687,410) for reimbursement of the purchase of slot machines and the slot machine
management system. SIGA estimates total costs over the next five years, based on the machines currently in use, as follows:
2013
$ 6,143,481
2014
2,983,132
2015
1,374,178
2016
872,308
2017
354,820
LETTERS OF CREDIT
SIGA has two letters of credit with First Nations Bank of Canada, $52,500 payable to the City of Swift Current, and $200,000
payable to the City of Yorkton.
OTHER
The Casino Operating Agreement requires SIGA, upon receiving direction from SLGA, to pay to Indigenous Gaming Regulators
Inc. (“IGR”) the amount of IGR’s annual operating budget. SLGA has directed SIGA to pay IGR $3,232,128 for 2012-2013
(2011-2012 – $3,232,128).
SIGA entered into an agreement with Saskatoon Prairieland Park Corporation (“SPPC”) regarding the maintenance of a certain level
of income when SPPC closed its casino. Under this agreement, SIGA agreed to pay SPPC $216,667 monthly, subject to certain
conditions, effecctive August 10, 2007 and continuing for 30 years.
CONTINGENCIES
SIGA enters into contractual arrangements with suppliers of services, products and facilities in the normal course of business.
Contracts are subject to legal interpretation from time to time and disputes do arise. Management plans to account for such dispute
resolutions in the year such disputes are settled, as they cannot be reasonably estimated prior to this time.
In addition, various other claims and lawsuits are pending against SIGA in the ordinary course of business. While it is not possible
to determine the ultimate outcome of such actions at this time, and there exist inherent uncertainties in predicting such outcomes,
it is SIGA’s belief that the ultimate resolution of such actions is not reasonably likely to have a material adverse effect on its
financial position or results of operations.
24. TRANSITION TO IFRS
The accounting policies in Note 3 have been applied in preparing the financial statements for the year ended March 31, 2012,
the comparative information for the year ended March 31, 2011, and the preparation of the opening IFRS statement of financial
position at April 1, 2010, SIGA’s date of transition to IFRS (“transition date”).
The adoption of IFRS requires the application of IFRS 1. IFRS 1 generally requires that an entity retrospectively apply all IFRS
effective at the end of its first IFRS reporting period. However, IFRS 1 provides certain mandatory exceptions and permits limited
optional exemptions. The IFRS 1 optional exemptions that have been applied are described in this note.
In preparing its opening IFRS statement of financial position at April 1, 2010 and comparative information for the year ended
March 31, 2011, SIGA has adjusted amounts previously reported in financial statements prepared in accordance with CGAAP.
An explanation of how the transition from CGAAP to IFRS has affected SIGA’s financial position, financial performance and cash
flows is set out in the following tables and the notes that accompany the tables for significant transition adjustments.