Annual Report 2017-2018

THE AMERICAN CLUB

NOTES TO FINANCIAL STATEMENTS 30 June 2018

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:

2018

2017

$

$

Financial assets

Cash and bank balances

54,814,036 85,612,504

Due from members and other receivables

2,050,781

2,707,890

Investment securities

12,227 13,634 56,877,044 88,334,028

Financial liabilities

Trade and other payables, at amortised cost

7,650,667 5,689,854

(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:

45 2017/18 ANNUAL REPORT