20. FINANCIAL RISK MANAGEMENT (CONTINUED)
The following reflects an aging summary of SIGA’s trade accounts receivable balances:
March 31, 2016
March 31, 2015
90 days and greater
Allowance for doubtful accounts
The allowance for doubtful accounts is reviewed quarterly based on an estimate of outstanding amounts that are considered
uncollectible. Historically, SIGA has not written off a significant portion of its trade accounts receivable balances.
Interest Rate Risk
Interest rate risk is the risk of financial loss resulting from changes in market interest rates. In order to manage its interest rate
risk exposure, SIGA entered into separate interest rate swap arrangements for the Dakota Dunes, Living Sky and Painted Hand
construction projects as described in Note 11. These arrangements fixed the interest rates for the loan for each construction
project at 4.94%, 5.09%, 5.09% and 2.08% respectively over the term of the loans.
At March 31, 2016, if interest rates at that date had been 100 basis points lower with all other variables held constant, total
comprehensive income for the year before distribution to SLGA would have been $1,755,452 (2015 – $2,221,331) lower,
arising mainly as a result of higher unrealized losses on interest rate swaps, partially offset by lower interest expense on variable
borrowings. If interest rates had been 100 basis points higher, with all other variables held constant, total comprehensive income
for the year before distribution to SLGA would have been $1,661,234 (2015 – $2,089,500) higher, arising mainly as a result of
lower unrealized losses on interest rate swaps, partially offset by higher interest expense on variable borrowings.
Foreign Exchange Risk
SIGA faces exposure to the U.S./Canadian dollar exchange rate through the purchase of goods and services payable in U.S.
dollars. The risk is not considered significant.
NOTES TO THE FINANCIAL STATEMENTS
Year Ended March 31, 2016