Annual Report 2018/19

NOTES TO FINANCIAL STATEMENTS 30 June 2019

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)

Revenue Recognition (before 1 July 2018) – Revenue is measured at the fair value of the consideration received or receivable. Revenue from food and beverage is recognised upon sale of the food and beverage items. Revenue from member activities and club services are recognised when the services have been rendered. Revenue from membership dues is recognised on accrual basis. Entrance fees are recognised when a member is elected into full membership. Until that time funds received are retained in an account as fees received in advance from potential members. Rental income is accounted for on a straight-line basis over the lease terms on ongoing leases. The aggregate cost of incentives provided to lessees is recognised as a reduction of rental income over the lease term on a straight-line basis. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable. Revenue Recognition (from 1 July 2018) – The Club recognises revenue when control of a goods or service is transfer to a customer. Revenue from food and beverage is recognised upon sale of the food and beverage items at the point in time. Revenue from member activities are recognised when the services have been rendered over time. Revenue from club services are recognised when the services have been rendered over time. Revenue from membership dues is recognised on accrual basis over time. Entrance fees are recognised when a member is elected into full membership at the point in time. Until that time funds received are retained in an account as fees received in advance from potential members. Interest income is accrued on a time basis over time, by reference to the principal outstanding and at the effective interest rate applicable. Retirement Benefit Obligations – Payments to defined contribution retirement benefit plans are charged as an expense when employees have rendered the services entitling them to the contributions. Payments made to state-managed retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments to defined contributions plans where the Club’s obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan.

Employee Leave Entitlement – Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the end of the reporting period.

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The American Club 2018/19 ANNUAL REPORT