The American Club 2018/2019 Annual Report

NOTES TO FINANCIAL STATEMENTS 30 June 2019

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 : Building value :

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

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. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

2019 $

2018 $

Alternative investments

10,242

12,227

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 2019, 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

2019 $

2018 $

CPF payable

324,299 373,380

280,174 305,928

Provision for unutilised leave Deferred income (Note 12)

-

59,719 38,855

Deposits received

62,954

Other accrued operating expenses

3,948,454 3,848,056 4,709,087 4,532,732

12. CONTRACT LIABILITIES

This relates to consideration received to render services in future periods.

Prepayments are paid upfront as part of the initial sales transaction whereas revenue is recognised over time when services are provided to the customer. A contract liability is recognised for revenue relating to the Club at the time of the initial sales transaction and is released when services are rendered.

61

The American Club 2018/19 ANNUAL REPORT