The American Club 2017/2018 Annual Report

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2018

6. CASH AND CASH EQUIVALENTS (cont’d)

Note A:

A short term deposit amounting to $1,000,000 (2017 : $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 (2017 : $312,600). The bank overdraft facility remains unutilised. Fixed deposits bear average effective interest rate of 1.39% (2017 : 1.20%) per annum and for a tenure of approximately 1 to 12 months (2017 : 1 to 12 months). The fixed deposits are readily convertible to cash at minimal costs.

7. DUE FROM MEMBERS

2018

2017

$

$

Amounts receivable from members Allowance for doubtful debts

1,814,130

2,121,552

(52,409)

(65,673)

1,761,721

2,055,879

The average credit period is 30 days (2017 : 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:

2018

2017

$

$

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

1,503,245

1,747,056

258,476 308,823 1,761,721 2,055,879

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

52,409

65,673

(52,409) (65,673) - -

Total members’ balances, net

1,761,721 2,055,879

(i) Aging of members’ balances that are past due but not impaired:

2018

2017

$

$

< 30 days

140,049 102,707

234,970 56,630

30 to 60 days

More than 60 days

15,720 17,223 258,476 308,823

51 2017/18 ANNUAL REPORT