3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Impairment of Non-Financial Assets
At the end of each reporting period, SIGA reviews the carrying amount of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount
of the asset is estimated in order to determine the extent of the impairment loss (if any). When it is not possible to estimate the
recoverable amount of an individual asset, SIGA estimates the recoverable amount of the cash-generating unit to which the asset
belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual
cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units that a reasonable and
consistent basis of allocation can be identified.
Recoverable amount is the higher of the fair value less costs to sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset for which estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying
amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately
in the statement of comprehensive income.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the
revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A
reversal of an impairment loss is recognized immediately in the statement of comprehensive income.
Gaming revenue (slot and table revenues) represents the net win from those gaming activities calculated as the difference
between amounts wagered and pay-outs by the casino. Gaming revenues are net of accruals for anticipated payouts of
progressive jackpots and promotion allowances from the Players Club program.
Ancillary revenues include hotel, food, beverage and concession revenue and such revenues are recognized when the goods and
services are provided.
Revenues exclude the retail value of food, beverage and other promotional allowances provided on a complimentary basis to guests.
The cost of providing the complimentary items is included in direct operating expenses.
Commitment of Net Proceeds of Table Operations
Liabilities are recorded when amounts to be distributed are approved by the Board.
Allocation of Expenses
Table game operations
Costs allocated to table game operations include actual direct expenses, and an allocation of indirect site expenses based on the
percentage of gross table revenue to total revenue on an individual casino site basis.
Central office costs are allocated to table game operations based on a percentage of gross table revenue to total revenue. These
central office costs are then allocated to each casino site based on the percentage of each casino site’s table net income to all
casinos’ table net income before the allocation of indirect site expenses.
Slot machine operations
Costs allocated to slot machine operations include actual direct expenses, and an allocation of indirect site expenses based on
the percentage of gross slot revenue to total revenue on an individual casino site basis.
All remaining central office costs net of table games and ancillary allocations are allocated to slot operations. These central office
costs are then allocated to each casino site based on its percentage of casino slot net income net of indirect site expenses.
NOTES TO THE FINANCIAL STATEMENTS
Year Ended March 31, 2016