Page 64 - 2012_Annual Report

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Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2012
62
24. TRANSITION TO IFRS (CONTINUED)
ELECTED IFRS 1 EXCEPTIONS AND EXEMPTIONS APPLICABLE TO THE PRESENTATION OF THE OPENING IFRS FINANCIAL POSITION
SIGA has elected and applied the following IFRS 1 exemptions:
Significant estimates (mandatory exception)
An entity’s estimates under IFRS at the transition date shall be consistent with estimates made at the same date under previous
CGAAP (after adjustments to reflect difference in accounting policies) unless there is objective evidence that those estimates were
in error. All of SIGA’s estimates reflect conditions in effect at transition.
Borrowing costs
IFRS 1 provides the option to apply IAS 23, Borrowing Costs (“IAS 23”), prospectively from the transition date to IFRS
(April 1, 2010), or from a particular pre-transition date elected by the first time adopter. Borrowing costs may be capitalized
on qualifying assets for which the commencement date for capitalization was on or after the date selected. SIGA has elected
to apply IAS 23 on its inception as a corporation. Based on this election, SIGA will capitalize borrowing costs incurred on all
qualifying assets.
LEASES
This exemption applies to first-time adopters who have made a determination of whether an arrangement contained a lease in
accordance with a previous CGAAP. If the determination made under the entity’s previous CGAAP would have given the same
outcome as that resulting from applying IAS 17 – Leases and IFRIC 4 – Determining whether an Arrangement contains a Lease,
then the first-time adopter need not reassess that determination when it adopts IFRS. SIGA has elected to apply this exemption,
and as a result has not reassessed any arrangements entered into or modified after January 1, 2005 as they were previously
assessed under equivalent CGAAP guidance.
MANDATORY EXCEPTIONS TO RETROSPECTIVE APPLICATION
In preparing these financial statements in accordance with IFRS 1, SIGA has applied the following mandatory exceptions from full
retrospective application of IFRS:
ESTIMATES
Hindsight was not used to create or revise estimates. Accordingly, the estimates previously made by SIGA under previous CGAAP
were not revised for application of IFRS except where necessary to reflect any difference in accounting policies.
DERECOGNITION OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
SIGA has applied the derecognition requirements of IAS 39 – Financial Instruments: Recognition and Measurement, prospectively
for transactions occurring on or after January 1, 2004.