The American Club 2019/2020 Annual Report

61 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2020

12. CONTRACT LIABILITIES (cont’d) At the end of the reporting period, the Club has contract liabilities of $1,401,922 (2019: $434,373).

2020 $

2019 $

Prepaid packages

474,011

405,484

Deferred income

17,070

28,889

Deferred grant income (jobs support scheme)

910,841

-

Deferred grant income (cash grant/ rental waiver)

112,517

-

1,514,439

434,373

13. CLUB FUNDS

Operating Fund

Operating Fund comprises other income and expenses.

Capital Fund Following Members’ approval on 3 June 2015 for the Club to undertake the Redevelopment Project, the instructions for the fund redemption of the GAP portfolio were issued on 10 June 2015 and placed as short-term deposits to protect the Club from market risk and volatility but with significantly reduced investment earnings. The Club liquidated its investment portfolio in August 2015 and recognised a net realised gain in investment securities and financial derivatives of $17.9 million in 2016. The funds are currently placed as short-term deposits to meet redevelopment progress payments. As a result of the redemption of majority of the investment portfolio in August 2015, the intention of the sub-funds is no longer aligned as there are insufficient investment returns from the remaining capital funds for the annual distribution to these sub-funds. The General Committee therefore has approved to present the sub-funds as a consolidated Capital Fund from 2019.