Annual Report 2020-2021

57 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2021

4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT (cont’d) (c) Capital risk management policies and objectives The Club strives to maintain positive accumulated funds to ensure that the Club will be able to continue as a going concern. Members of the Club have passed a resolution at the Extraordinary General Meeting on 3 June 2015 for the Club to maintain not less than $20 million in reserves (cash and cash equivalents and financial assets at FVTOCI) throughout the final completion of the Club’s redevelopment project. The Club’s overall strategy remains unchanged from prior year. The Club is not subject to any externally imposed regulatory reserve requirement. As at the end of the reporting period, the Club maintains a reserve of $28,426,432 (2020: $22,752,886). This reserve will be drawn down to pay for amounts committed but unpaid under contracts related to the redevelopment project. 5. RELATED PARTY TRANSACTIONS Related parties consist of members of the General Committee and key management personnel. Parties are considered to be related if one party has the ability to control the Club or exercise significant influence over the Club in making financial and operating decision. These related party transactions occurred at market related prices and the General Committee and key management personnel declared their potential conflict of interest. The General Committee Members were not involved in the Club’s assessment and decision making process for these contracts.

2021 $

2020 $

Food and beverages income: Related organisations: - American Association of Singapore - American Women’s Association of Singapore

- -

12,406 160

Co m pensation of key management personnel Keymanagement personnel of theClub are those persons having the authority and responsibility for planning, directing and controlling the activities of the Club. The General Committee members and senior managers of the Club are considered as key management personnel of the Club.

2021 $

2020 $

Short-term benefits

2, 87 1 ,908 2,01 1 , 836

Short–term benefits comprise salaries, wages, bonuses, statutory contributions and other related expenses. The total cost of $2,871,908 includes seven personnel who left the Club during the year primarily as a result of a reorganisation exercise. The cost of these seven people, including severance costs, was $1,399,103. The cost of $1,472,805 was short-term benefits for key management personnel as disclosed in the Annual Report, including three who joined the Club during the year. The General Committee members do not receive any remuneration for their services to the Club.

THE AMERICAN CLUB SINGAPORE