The American Club 2016/2017 Annual Report

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2017

10. INVESTMENT SECURITIES (cont’d)

The Club obtained approval for the Club Redevelopment Project at the Extraordinary General Meeting on 3 June 2015 and the bulk of Club investment in unquoted mutual funds was liquidated in the year ended 2016, with the remaining investment in the year ended 2017. The Club classified fair value measurement using a fair value hierarchy that reflects the nature and complexity of the significant inputs used in making the measurement. As at 30 June 2017, the fair value measurement of the alternative investments are classified within Level 3 of the fair value hierarchy. There were no transfers between different levels during the year.

11. OTHER PAYABLES

2017

2016

$

$

CPF payable

293,829 306,322 69,430

284,695 320,026

Provision for unutilised leave

Deferred income

-

Other accrued operating expenses

1,731,546 828,874 2,401,127 1,433,595

12. CLUB FUNDS

Capital Fund comprises mainly Net Investment in Property, Plant and Equipment, Renewal and Replacement Fund, Security Fund and Legacy Fund. Entrance fees, interest, investment income, investment management expenses and allowance for impairment in value of investments, depreciation, gain or loss on sale of property, plant and equipment and a portion of taxation are attributable to the Capital Fund. All other income and expenses are attributable to the Operating Fund.

(a) Operating Fund comprises three components:

(i) A bank guarantee account;

(ii) A working capital component needed on demand or with short notification periods to meet operating cash flow timing needs; and

(iii) Operating surpluses brought forward from prior years.

The Operating Fund may be utilised for operating expenses approved by the General Committee. If the Operating Fund has been drawn down for unbudgeted operating expenses, it will be topped up with funds from the Legacy Fund at the end of the reporting period. (b) Net Investment in Property, Plant and Equipment comprises the net book value of property, plant and equipment including an asset revaluation reserve of $2,304,416 arising from the revaluation of The Clubhouse building and land in 1972.

55 2016/17 ANNUAL REPORT