John’ s Island Club, Inc. Notes to Financial Statements
Note 1. Nature of Organization and Significant Accounting Policies( Continued) Revenue recognized at a point in time and over time was as follows for the years ended December 31:
2025 2024($ in thousands)
Revenue recognized at a point in time |
$ |
24,710 |
$ |
24,333 |
Revenue recognized over time |
|
39,073 |
|
37,288 |
|
$ |
63,783 |
$ |
61,621 |
The Club collects and remits sales and use taxes from members at the point of sale for retail transactions and at the time of billing for membership dues. The Club reports such amounts under the net method on the statements of financial position. Accordingly, these taxes are not included in gross revenue.
Payment terms for dues, goods and services to members are billed to member accounts and are typically due in 30 days. In instances where the timing of revenue recognition differs from the timing of the right to invoice, the Club has determined that a significant financing component does not exist.
Interest income: Interest income is recorded when earned. Insurance proceeds: Insurance proceeds are recognized when assured.
Fair value of financial instruments: The carrying amount of cash, accounts receivable and accounts payable approximates fair value due to the short-term maturities of these instruments. The fair value of the deferred compensation plans( see Note 10) is estimated based on current prices for the underlying securities which comprise the deferred compensation balance.
Fair value measurements: The FASB Accounting Standards Codification( ASC) established a framework for measuring fair value and expands disclosures about fair value measurements. This guidance enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair value. Under this guidance, assets and liabilities carried at fair value must be classified and disclosed in one of the following three categories:
Level 1 Quoted market prices in active markets for identical assets for liabilities. Level 2 Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3 Unobservable inputs that are not corroborated by market data.
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