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3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Impairment of financial assets (including receivables) (continued)

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,

2016 and have not been applied in preparing these financial statements. The following future standards are relevant to SIGA:

• IFRS 9,

Financial Instruments

. IFRS 9 has a significant impact on financial liabilities designated under the fair value option.

In addition, IFRS 9 retains virtually all of the classification and measurement guidance in IAS 39,

Financial Instruments:

Recognition and Measurement

. IFRS 9 is effective for annual periods beginning on or after January 1, 2018.

• IFRS 15,

Revenue from Contracts with Customers

. IFRS 15 will require revenue recognition to depict the transfer of goods or

services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for

those goods or services. IFRS 15 is effective for annual periods beginning on or after January 1, 2018.

• IFRS 16,

Leases

. IFRS 16 brings most leases on-balance sheet for lessees under a single model, eliminating the distinction

between operating and finance leases. Lessor accounting however remains largely unchanged and the distinction between

operating and finance leases is retained. IFRS 16 is effective for annual reporting periods beginning on or after January 1,

2019. Earlier application is permitted if IFRS 15,

Revenue from Contracts with Customers

, has also been applied.

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.

NOTES TO THE FINANCIAL STATEMENTS

Year Ended March 31, 2016