The American Club 2023/2024 Annual Report

PAGE 86

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2023

9. PROPERTY, PLANT AND EQUIPMENT (cont’d)

The Club appointed a professional independent appraiser to assess the current market value of the land and building at 10 Claymore Hill, Singapore 229573. The valuation was based on cost method, comprising 2 components; value of land and value of improvement erected thereon. Value of land is then assessed based on a combination of market comparison method and residual method. The report, dated 24 July 2015, reflects the following valuation:

Land value

: :

$89,000,000 $32,000,000

Building value

The assets will remain stated at cost less accumulated depreciation and any accumulated impairment losses. Freehold land has an unlimited useful life and therefore is not depreciated.

10. RIGHT-OF-USE ASSET

Motor vehicle $

Cost At 1 July 2023

-

Addition

46,847 46,847

At 30 June 2024

Accumulated depreciation At 1 July 2023

-

Depreciation

19,385 19,385

At 30 June 2024

Net book value At 1 July 2023

-

At 30 June 2024

27,462

The Club leases a truck. The lease term is 3 years. The Club has options to renew the lease at the end of the lease term. The Club’s obligations are secured by the lessors’ title to the leased assets for such leases.

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2023 / 2024