The American Club 2023/2024 Annual Report

PAGE 74

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2024

4. FINANCIAL INSTRUMENTS, FINANCIAL RISKS AND CAPITAL MANAGEMENT

(a) Categories of financial instruments

The following table sets out the financial instruments as at the end of the reporting period:

2024

2023

$

$

Financial assets

Amortised cost: Cash and bank balances

21,285,619 20,375,732

Due from members and other receivables

2,402,225

3,429,891

Fair value: Investment in financial assets

12,882,850 11,563,765 36,570,694 35,369,388

Financial liabilities

Amortised cost: Trade and other payables Fair value: Derivative financial liabilities

7,774,206

7,513,167

10,332

46,297

7,784,538

7,559,464

(b) Financial risk management policies and objectives

The Club’s principal financial instruments, other than derivative financial instruments and investment securities, comprise cash and short term deposits. The Club has various other financial assets and liabilities such as amounts due from members and trade payables, which arise directly from its operations. Risk management is carried out by the Club’s investment advisor under policies approved by the General Committee. Compliance with policies and exposure limits are reviewed by the Investment Sub-committee and reported to the General Committee on a regular basis. The Club is exposed to financial risks arising from its operations and the use of financial instruments. The main risks arising from the Club’s financial instruments are foreign currency risk, interest rate risk, credit risk, market price risk and liquidity risk. The General Committee reviews and agrees to policies for managing these risks as indicated below:

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2023 / 2024