Annual Report 2018/19

NOTES TO FINANCIAL STATEMENTS 30 June 2019

7. DUE FROM MEMBERS (cont’d)

Previous accounting policy for impairment of amounts due from members The average credit period is 30 days (2018 : 30 days).

The concentration of credit risk is limited due to the member base being large and unrelated. Accordingly, the management believes that there is no further credit allowance required in excess of the allowance for doubtful debts. The table below is an analysis of balances due from members as at 30 June:

2018 $

Not past due and not impaired Past due but not impaired (i)

1,503,245 258,476 1,761,721

Impaired members’ balances (ii) Less: Allowance for impairment

52,409

(52,409) -

Total members’ balances, net

1,761,721

(i) Aging of members’ balances that are past due but not impaired:

2018 $

< 30 days

140,049 102,707 15,720 258,476

30 to 60 days

More than 60 days

Before accepting any new member, the Club will assess the potential member’s credit quality and define credit limits for each of the member. Limits attributed to members are reviewed periodically. Included in the Club’s members balances are receivables with a carrying amount of $258,476 which are past due at the end of the reporting date for which the Club has not made any allowance for doubtful debts as there has not been a significant change in credit quality and the amounts are still considered recoverable. These receivables are mainly arising from members that have good records with the Club and have placed minimum required deposits.

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The American Club 2018/19 ANNUAL REPORT