The American Club 2020/2021 Annual Report

59 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2021

7. DUE FROM MEMBERS (cont’d) Loss allowance for due from members has been measured at an amount equal to lifetime expected credit losses (ECL). The ECL on due from members are estimated using a provision matrix by reference to past default experience of the member and an analysis of the member’s current financial position, adjusted for factors that are specific to the members. There has been no change in the estimation techniques or significant assumptions made during the current reporting period. Amount due from members are written off when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. The following table details the risk profile of amount due from members based on the Club’s provision matrix. As the Club’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished between the Club’s different customer base.

Due from members - past due date

Not past due $

< 30 days $

31 - 90 days $

91 - 180 days $

> 180 days $

Total $

2021

Expected credit loss rate

0%

2%

7% 58% 100%

Estimated total gross carrying amount at default

1,573,320 156,387 66,930 12,912 32,678 1,842,227

Lifetime ECL

(2,169)

(2,391)

(4,878)

(7,597)

(49,713)

(32,678)

1 ,571, 1 5 1

153,996 62,052

5,315

- 1,792,514

2020

Expected credit loss rate

0%

1%

5% 33% 100%

Estimated total gross carrying amount at default

1,073,005 90,248 90,352 31,303

19,511 1,304,419

Lifetime ECL

(1,970)

(1,487)

(4,875) (10,314) (19,511) (38,157)

1,071,035 88,761

85,477 20,989

- 1,266,262

The movement in allowance for expected credit losses of amount due from members computed based on lifetime ECL are as follows:

2021 $

2020 $

At beginning of year

38,157

12,331

Movement recognised in profit or loss during the year on: - Assets originated and changes in credit risk

46,475

46,989

- Amounts recovered Amounts written off At end of year

(14,655)

(18,633)

(20,264)

(2,530)

49,713

38,157

THE AMERICAN CLUB SINGAPORE