Annual Report 2020-2021

43 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2021

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

At the date of authorisation of these financial statements, the following FRSs, INT FRSs and amendments to FRS that are relevant to the Club were issued but not yet effective: • Amendments to FRS 116: Covid-19-Related Rent Concessions beyond 30 June 2021 (1) • Amendments to FRS 16: Property, plant and equipment - Proceeds before intended use (2) • Amendments to FRS 37: Onerous Contract - Cost of Fulfilling a contract (2) • Annual improvements to FRSs 2018-2020 (2) • Amendments to FRS 1: Classification of Liabilities as Current or Non-current (3)

(1) Applies to annual periods beginning on or after 1 April 2021. (2) Applies to annual periods beginning on or after 1 January 2022. (3) Applies to annual periods beginning on or after 1 January 2023.

Management anticipates that the adoption of the above FRSs and amendments to FRSs in future periods will not have a material impact on the financial statements in the period of their initial adoption.

Financial instruments – Financial assets and financial liabilities are recognised on the Club’s statement of financial position when the Club becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities are added to or deducted from the fair value of the financial assets and financial liabilities, as appropriate, on initial recognition. Classification of financial assets Debt instruments mainly comprise cash and bank balances and trade and other receivables that meet the following conditions and are subsequently measured at amortised cost: • the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (FVTOCI): • the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling the financial assets; and • the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

THE AMERICAN CLUB SINGAPORE