The American Club 2023/2024 Annual Report

PAGE 83

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2024

6. CASH AND BANK BALANCES (cont’d)

Note A:

Short term deposits bear average effective interest rate at ranges of 2.50% to 3.55% (2023: 0.10% to 3.75%) per annum and for a tenure of approximately 1 month to 6 months (2023: 1 to 3 months).

Note B:

Investment portfolio cash and liquid investment held by investment advisor as at end of the reporting period was held by the Club’s investment manager, Bank of Singapore.

Note C:

A short-term deposit amounting to $600,000 (2023: $600,000) is pledged to a bank for an overdraft facility and a performance guarantee facility. As at the end of the reporting period, the performance guarantees issued amounted to $352,700 (2023: $665,000). The bank overdraft facility was $NIL (2023: $580,000).

7. DUE FROM MEMBERS

2024

2023

$

$

Amounts receivable from members

2,330,078 (55,693) 2,274,385

2,760,786 (109,224) 2,651,562

Loss allowance

The average credit period is 30 days. No interest is charged on the outstanding balance.

Loss allowance for due from members has been measured at an amount equal to lifetime expected credit losses (ECL). The ECL on due from members are estimated using a provision matrix by reference to past default experience of the member and an analysis of the member’s current financial position, adjusted for factors that are specific to the members.

There has been no change in the estimation techniques or significant assumptions made during the current reporting period.

Amount due from members are written off when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery.

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2023 / 2024