Page 50 - SIGA Annual Report 2013

Basic HTML Version

Saskatchewan Indian Gaming Authority Inc.
Notes to the Financial Statements
year ended March 31, 2013
50
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 amortized 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 extent 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.
FUTURE ACCOUNTING CHANGES
A number of new standards, and amendments to standards and interpretations, are not yet effective for the year ended March 31, 2013,
and have not been applied in preparing these financial statements. None of these new standards are expected to have a significant effect
on the financial statements of SIGA, but the following future standards are relevant to SIGA:
IFRS 9,
Financial Instruments.
IFRS 9 (2010) expands on IFRS 9 as issued in 2009. The 2010 version has a significant impact on
financial liabilities designated under the fair value option. In addition, IFRS 9 (2010) retains virtually all of the classification and
measurement guidance in IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 (2010) is effective for annual
periods beginning on or after January 1, 2015.
IFRS 13,
Fair Value Measurement
. IFRS 13 defines fair value, establishes a framework for measuring fair value and sets out disclosure
requirements for fair value measurement. IFRS 13 is effective for annual periods beginning on or after January 1, 2013.
IAS 32,
Financial Instruments: Presentation
. IAS 32 provides amendments to offsetting financial assets and financial liabilities.
IAS 32 is effective for annual periods beginning on or after January 1, 2014.
SIGA does not have any plans to early adopt any of the new or amended standards. The extent of the impact on adoption of these
standards is not known at this time, however is not expected to be material.
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% and matures on October 3, 2013. The $200,000 guaranteed investment certificate earns interest at an
annual rate of 0.90% and matures on March 26, 2014.