The American Club 2020/2021 Annual Report

64 PAGE

NOTES TO FINANCIAL STATEMENTS 30 June 2021

13. DERIVATIVE FINANCIAL LIABILITIES

2021 $

2020 $

Forward foreign exchange contracts

10,1 16

-

The Club utilises currency derivatives to hedge significant future transactions and cash flows. The Club is a party to foreign exchange contracts in the management of its foreign exchange rates exposure. The instruments purchased are primarily denominated in the currencies of the Club’s investment securities. At the end of the reporting period, the total notional amount of outstanding forward foreign contracts to which the Club is committed is as follows:

2021 $

2020 $

Forward foreign exchange contracts

4,900,000

-

As at 30 June 2021, the total fair value liability of the forward foreign exchange contracts is estimated to be approximately $10,116 (2020 : $Nil). Changes in the fair value of the forward foreign exchange contracts are recorded in profit or loss. The following table details the forward foreign currency contracts outstanding as at the end of the reporting period.

Foreign currency

Contract value

Fair value

2021

2020

2021

2020

2021

2020

US$

US$

$

$

$

$

Sell USD less than 6 months

3,650,006

- 4,900,000

-

(10,116)

-

14. 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. At the end of the reporting period, the Club has contract liabilities of $655,129 (2020 : $1,514,439).

2021 $

2020 $

Prepaid packages

610,578

474,01 1

Deferred income

44,551

17,070

Deferred grant income (jobs support scheme)

-

910,841

Deferred grant income (cash grant/rental waiver)

-

1 12,517

655,129

1,514,439

THE AMERICAN CLUB SINGAPORE