The American Club 2021/2022 Annual Report

PAGE 85 THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2021 / 2022

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2022

13. DERIVATIVE FINANCIAL LIABILITIES (cont’d)

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:

2022

2021

$

$

Forward foreign exchange contracts

6,186,723

4,900,000

As at 30 June 2022, the total fair value liability of the forward foreign exchange contracts is estimated to be approximately $29,705 (2021 : $10,116). 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

2022 US$

2021 US$

2022

2021

2022

2021

$

$

$

$

Sell USD less than 6 months

4,480,000

3,650,006

6,186,723 4,900,000 (29,705)

(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 $587,464 (2021 : $655,129).

2022

2021

$

$

Prepaid packages Deferred income

534,217 53,247 587,464

610,578 44,551 655,129