The American Club 2019/2020 Annual Report

THE AMERICAN CLUB ANNUAL REPORT 2019/2020

56 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2020

5. RELATED PARTY TRANSACTIONS Related parties consist of members of the General Committee and key management personnel. Parties are considered to be related if one party has the ability to control the Club or exercise significant influence over the Club in making financial and operating decision. These related party transactions occurred at market related prices and the General Committee and key management personnel declared their potential conflict of interest. The General Committee Members were not involved in the Club’s assessment and decision making process for these contracts.

2020 $

2019 $

Food and beverages income: - Related organisations (American Association of Singapore, American Women’s Association of Singapore and Canadian Association)

12,566

42,416

Co m pensation of key management personnel Keymanagement personnel of the Club are those persons having the authority and responsibility for planning, directing and controlling the activities of the Club. The General Committee members and senior managers of the Club are considered as key management personnel of the Club.

2020 $

2019 $

Short-term benefits

2,011,836

2,782,049

Short–term benefits comprise salaries, wages, bonuses, statutory contributions and other related expenses of the senior managers as disclosed in the Club’s Annual Report, including three who resigned and one who joined during the year. No bonus provision was made for senior managers for this financial year. The General Committee members do not receive any remuneration for their services to the Club.

6. CASH AND CASH EQUIVALENTS

2020 $

2019 $

Cash on hand and in banks Short term deposits

6,343,675 16,400,000 6,974,675 22,400,000 22,743,675 29,374,675

Cash and cash equivalents in the statement of cash flows comprise:

2020 $

2019 $

Cash and bank balances (as above)

22,743,675 29,374,675

Less: Deposits in banks and held by investment advisor

(15,400,000)

(21,400,000)

Less: Pledged deposit (Note A)

(1,000,000)

(1,000,000)

6,343,675

6,974,675