The American Club 2017/2018 Annual Report

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2018

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

Fair value of financial instruments that are carried at fair value

The following table shows an analysis of financial instruments carried at fair value by level of fair value hierarchy: Quoted Prices in active Significant markets for other identical observable Unobservable instruments inputs inputs Total (Level 1) (Level 2) (Level 3) $ $ $ $ 2018 Financial assets: Alternative investments - - 12,227 12,227

2017 Financial assets: Alternative investments

-

-

13,634 13,634

Fair value hierarchy

The Club classifies fair value measurement using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:

• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices), and • Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

During the current financial year, there were no transfers of financial instruments between the levels of the fair value hierarchy.

48 2017/18 ANNUAL REPORT