The American Club 2021/2022 Annual Report

PAGE 77 THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2021 / 2022

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2022

4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT (cont’d)

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).

During the current financial year, there were no transfers of financial instruments between the levels of the fair value hierarchy.

Determination of fair value Alternative investments: These investments are valued using valuation models which use both observable and non-observable data. The non-observable inputs to the models include assumptions regarding the future financial performance of the investee, its risk profile, and economic assumptions regarding the industry and geographical jurisdiction in which the investee operates.

Movements in Level 3 financial instruments measured at fair value The following table presents the reconciliation for all financial assets measured at fair value based on significant unobservable inputs (Level 3).

2022

2021

$

$

Opening balance

5,588

9,211

Total losses: - In other comprehensive income - In realised investment income Closing balance

(5,588)

(3,623)

-

5,588