The American Club 2023/2024 Annual Report

PAGE 89

NOTES TO FINANCIAL STATEMENTS 30 JUNE 2024

15. DERIVATIVE FINANCIAL LIABILITIES

2024

2023

$

$

Forward foreign exchange contracts

10,332

46,297

The Club utilises currency derivatives to hedge significant future transactions and cash flows. The Club is a party to foreign exchange contracts in the management of its foreign exchange rates exposure. The instruments purchased are primarily denominated in the currencies of the Club’s investment securities.

At the end of the reporting period, the total notional amount of outstanding forward foreign contracts to which the Club is committed is as follows:

2024

2023

$

$

Forward foreign exchange contracts

6,689,144

5,880,503

As at 30 June 2024, the total fair value liability of the forward foreign exchange contracts is estimated to be approximately $10,332 (2023: $46,297). Changes in the fair value of the forward foreign exchange contracts are recorded in profit or loss.

The following table details the forward foreign currency contracts outstanding as at the end of the reporting period.

Foreign currency

Contract value

Fair value

2024

2023

2024

2023

2024

2023

US$

US$

$

$

$

$

Sell USD less than 6 months

4,980,000 4,410,000 6,689,144 5,880,503 (10,332) (46,297)

THE AMERICAN CLUB SINGAPORE ANNUAL REPORT 2023 / 2024