The American Club 2019/2020 Annual Report

THE AMERICAN CLUB ANNUAL REPORT 2019/2020

60 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2020

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

Building value : $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

2020 $

2019 $

Alternative investments

9, 21 1

10,242

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 2020, 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

2020 $

2019 $

CPF payable

274,214

324,299

Provision for unutilised leave

306,237

373,380

Deposits received

63,002

62,954

Other accrued operating expenses

2,553,577 3,948,454 3,197,030 4,709,087

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.