The American Club 2016/2017 Annual Report

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2017

6. CASH AND CASH EQUIVALENTS (cont’d)

Note A:

A short term deposit amounting to $1,000,000 (2016 : $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 $312,600 (2016 : $357,600). The bank overdraft facility remains unutilised. Fixed deposits bear average effective interest rate of 1.20% (2016 : 0.92%) per annum and for a tenure of approximately 1 to 12 months (2016 : 3 months). The fixed deposits are readily convertible to cash at minimal costs.

7. DUE FROM MEMBERS

2017

2016

$

$

Amounts receivable from members Allowance for doubtful debts

2,121,552 2,502,529 (65,673) (63,387) 2,055,879 2,439,142

The average credit period is 30 days (2016 : 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:

2017

2016

$

$

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

1,747,056

2,081,721

308,823 357,421 2,055,879 2,439,142

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

65,673

63,387

(65,673) (63,387) - -

Total members’ balances, net

2,055,879 2,439,142

51 2016/17 ANNUAL REPORT