Annual Report 2018/19

NOTES TO FINANCIAL STATEMENTS 30 June 2019

6. CASH AND CASH EQUIVALENTS (cont’d)

Note A: A short term deposit amounting to $1,000,000 (2018 : $1,000,000) is pledged to a bank for an overdraft facility and a performance guarantee facility. As at the end of the reporting period, the performance guarantees issued amounted to $322,600 (2018 : $312,600). The bank overdraft facility remains unutilised. Fixed deposits bear average effective interest rate of 1.77% (2018 : 1.39%) per annum and for a tenure of approximately 1 to 3 months (2018 : 1 to 12 months). The fixed deposits are readily convertible to cash at minimal costs.

7. DUE FROM MEMBERS

2019 $

2018 $

Amounts receivable from members

2,117,625 (12,331) 2,105,294

1,814,130 (52,409) 1,761,721

Loss allowance

Due from Members The average credit period is 30 days. No interest is charged on the outstanding balance. Loss allowance for due from members has been measured at an amount equal to lifetime expected credit losses (ECL). The ECL on due from members are estimated using a provision matrix by reference to past default experience of the member and an analysis of the member’s current financial position, adjusted for factors that are specific to the members. There has been no change in the estimation techniques or significant assumptions made during the current reporting period. Amounts receivable from members will be written off when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. The movement in allowance for expected credit losses of trade receivables and related party balances computed based on lifetime ECL are as follows:

2019 $

At beginning of year Adoption of FRS 109

52,409

-

At beginning of year (adjusted)

52,409

Movement recognised in profit or loss during the year on: - Assets originated and changes in credit risk

13,016

- Amounts written off - Amounts recovered

(34,301) (18,793)

At end of year

12,331

57

The American Club 2018/19 ANNUAL REPORT