The American Club 2023/2024 Annual Report

PAGE 76

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2024

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

If the relevant foreign currency strengthens by 3% against the functional currency of the Club, loss for the year will increase (decrease) by:

Profit and loss

$

$

2024 United states dollar Hongkong dollar

189,716 22,779 10,714 9,491 11,380

(189,716) (22,779) (10,714) (9,491) (11,380)

British pound Japanese yen

Euro

Australian dollar

5,811

(5,811) (5,577)

Swiss franc

5,577

Chinese yuan

92

(92)

Profit and loss

$

$

2023 United states dollar Hongkong dollar

177,259 24,470 10,693

(177,259) (24,470) (10,693)

British pound Japanese yen

8,493 6,104 5,575 3,924

(8,493) (6,104) (5,575) (3,924)

Euro

Australian dollar

Swiss franc

Chinese yuan

92

(92)

(ii) Interest rate risk management

The main source of interest rate risk is the interest-bearing fixed deposit. The Club’s policy is to obtain favourable interest rates that are available.

Interest rate from interest income for the financial year is between 2.50% to 3.55% (2023: 0.10% to 3.75%) per annum.

No sensitivity analysis is prepared as the Club does not expect any material effect on the Club’s profit and loss arising from the effects of reasonably possible changes to interest rates on interest bearing financial instruments at the end of the reporting period.

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2023 / 2024