Annual Report 2018/19

NOTES TO FINANCIAL STATEMENTS 30 June 2019

4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT

( a) Categories of financial instruments The following table sets out the financial instruments as at the end of the reporting period:

2019 $

2018 $

Financial assets

Amortised cost:

Cash and bank balances

29,374,675 54,814,036

Due from members and other receivables

2,360,295

2,050,781

Financial assets at FVTOCI

10,242

12,227

31,745,212 56,877,044

Financial liabilities

Amortised cost: Trade and other payables

8,658,077

7,650,667

( b) Financial risk management policies and objectives The Club’s principal financial instruments, other than derivative financial instruments and investment securities, comprise cash and short term deposits. The Club has various other financial assets and liabilities such as amounts due from members and trade payables, which arise directly from its operations. Risk management is carried out by the Club’s investment advisor under policies approved by the General Committee. Compliance with policies and exposure limits are reviewed by the Investment Sub-committee and reported to the General Committee on a regular basis. The Club is exposed to financial risks arising from its operations and the use of financial instruments. The main risks arising from the Club’s financial instruments are foreign currency risk, interest rate risk, credit risk, market price risk and liquidity risk The General Committee reviews and agrees to policies for managing these risks as indicated below: (i) Foreign exchange risk management The Club is not exposed to significant foreign currency exchange risk as the transactions are mainly denominated in Singapore dollars, which is the functional currency of the Club.

51

The American Club 2018/19 ANNUAL REPORT