The American Club 2019/2020 Annual Report

THE AMERICAN CLUB ANNUAL REPORT 2019/2020

54 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2020

4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT (cont’d) All investment securities are classified as financial assets at fair value through other comprehensive income (“FVTOCI”). Except as detailed in the following table, the General Committee considers that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in the financial statements approximate their fair values: 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 markets for identical instruments

Significant other observable inputs

Unobservable inputs

Total

(Level 1)

(Level 2)

(Level 3)

$

$

$

$

2020

Financial assets:

Alternative investments

-

-

9, 2 1 1

9, 2 1 1

2019

Financial assets:

Alternative investments

-

-

10,242

10,242

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).