Page 47 - SIGA Annual Report 2013

Basic HTML Version

Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2013
47
3.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
ALLOCATION OF EXPENSES (CONTINUED)
Ancillary operations
Costs allocated to ancillary operations include actual direct expenses, and an allocation of indirect site expenses based on the percentage
of gross ancillary revenue to total revenue on an individual casino site basis.
Central office costs are allocated to ancillary operations based on a percentage of gross ancillary revenue to total revenue. These central
office costs are then allocated to each casino site based on the percentage of each casino site’s ancillary net income to all casinos’
ancillary net income before the allocation of indirect site expenses.
CUSTOMER LOYALTY PROGRAM
As part of its customer loyalty initiative, SIGA offers a players club program to patrons. Under the program, club members accumulate
reward points based on amounts wagered on slot machines. Members can redeem their points for cash or vouchers for free or discounted
goods or services. SIGA records the points earned as a reduction of gaming revenue. Accounts payable and accrued liabilities are accrued
for the estimated cost of the earned points balance at the end of the period under the players club program. If the patron chooses to
redeem their points for a voucher for free or discounted goods or services, the revenue is determined by the fair value of the undelivered
goods and services related to a customer loyalty program and remains in accounts payable and accrued liabilities until the promotional
consideration is provided.
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
All financial instruments are initially measured at fair value, plus transaction costs, except in the case of financial assets and liabilities
classified as fair value through profit or loss (“FVTPL”). The classification of financial instruments at initial recognition depends on the
purpose and management’s intention for which the financial instruments were acquired or issued, their characteristics and SIGA’s
designation of such instruments. Measurement in subsequent periods depends on whether the financial instruments have been classified
as FVTPL, loans and receivables, and other liabilities. An explanation of the nature of these classifications follows. SIGA’s classifications
of its financial instruments are disclosed in Note 20.
Financial assets are classified as at FVTPL when the financial asset is either held-for-trading or it is designated as at FVTPL.