The American Club 2023/2024 Annual Report

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NOTES TO FINANCIAL STATEMENTS 30 JUNE 2024

2. MATERIAL ACCOUNTING POLICY INFORMATION (cont’d)

Other government grants are recognised as income over the periods necessary to match them with the costs for which they are intended to compensate, on a systematic basis. Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Club with no future related costs are recognised in profit or loss in the period in which they become receivable.

Revenue Recognition - The Club recognises revenue when control of a goods or service is transfer to a customer.

Revenue from food and beverage is recognised upon sale of the food and beverage items at the point in time.

Revenue from member activities are recognised when the services have been rendered over time.

Revenue from club services are recognised when the services have been rendered over time.

Revenue from membership dues is recognised on accrual basis over time.

Entrance fees are recognised when a member is elected into full membership at the point in time when funds received are retained in an account as fees received in advance from potential members.

Interest income is accrued on a time basis over time, by reference to the principal outstanding and at the effective interest rate applicable.

Retirement Benefit Costs - Payments to defined contribution retirement benefit plans are charged as an expense when employees have rendered the services entitling them to the contributions. Payments made to state-managed retirement benefit schemes, such as the Singapore Central Provident Fund, are dealt with as payments to defined contributions plans where the Club’s obligations under the plans are equivalent to those arising in a defined contribution retirement benefit plan. Employee Leave Entitlement - Employee entitlements to annual leave are recognised when they accrue to employees. A provision is made for the estimated liability for annual leave as a result of services rendered by employees up to the end of the reporting period.

Income Tax - Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of profit or loss and comprehensive income because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are not taxable or tax deductible. The Club’s liability for current tax is calculated using tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2023 / 2024