The American Club 2016/2017 Annual Report

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2017

4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT (cont’d)

Movements in Level 3 financial instruments measured at fair value

The following table presents the reconciliation for all financial assets measured at fair value based on significant unobservable inputs (Level 3).

2017

2016

$

$

Opening balance

2,625,079 88,025,365 (2,265,009) (88,215,809)

Redemptions during the year Purchase of Hold-Back Fund Total gains (losses) - in other comprehensive income

-

2,265,009

(3,288,091) (17,925,336) 2,941,655 18,475,850

- in profit or loss Closing balance

13,634 2,625,079

(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. The Club’s overall strategy remains unchanged from prior year. The Club is not subject to any externally imposed regulatory reserve requirement.

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 assessments and decision making process for these contracts.

2017

2016

$

$

Rental of premises to General Committee member - related organisations

140,487

207,419

Food and beverages income - related organisations

37,089

71,677

49 2016/17 ANNUAL REPORT