The American Club 2017/2018 Annual Report

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2018

9. PROPERTY, PLANT AND EQUIPMENT (cont’d)

The Club appointed a professional independent appraiser to assess the current market value of the land and building at 10 Claymore Hill, Singapore 229573. The valuation was based on cost method, comprising 2 components; value of land and value of improvement erected thereon. Value of land is then assessed based on a combination of market comparison method and residual method. The report, dated 24 July 2015, reflects the following valuation:

Land value

:

$89,000,000 $32,000,000

Building value :

The assets will remain stated at cost less accumulated depreciation and any accumulated impairment losses. Freehold land has an unlimited useful life and therefore is not depreciated.

10.INVESTMENT SECURITIES

The Club appointed investment advisors to manage the investment portfolio. Under the direction of the General Committee, the Finance Committee and Investment Sub-Committee, the investment advisors invested the majority of the Club’s cash holdings into various mutual funds.

2018

2017

$

$

Alternative investments

12,227

13,634

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 2018, 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.

2018

2017

11. OTHER PAYABLES

$

$

CPF payable

280,174 305,928 59,719 38,855

293,829 306,322

Provision for unutilised leave

Deferred income Deposits received

69,430

-

Other accrued operating expenses

3,848,056 1,731,546 4,532,732 2,401,127

54 2017/18 ANNUAL REPORT