CONFIDENTIAL
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Book value. The book value is either the mid-market price on the last business day of the preceding accounting year,
or
for Bonds, Notes and Certificates of Deposit bought during the year, the purchase price plus brokerage, stamp duty etcetera, but excluding accrued interest.
Year end valuations. Bonds, Notes and Certificates of
Deposit are valued at mid-market prices on the last business
day at the place where the market is made. Where
depositaries quote different mid-market prices for the same
obligations, the lowest quoted price is used. Differences between market prices and book values are credited to or charged against income in the Income and Expenditure Account.
d. EQUITIES
Listed shares are valued at the lower of cost or
market value at the year end. Unlisted shares other than
the Hang Lung Bank Limited and the Overseas Trust Bank Limited both of which have been written down to $1, are
valued at cost. Dividends are accounted for on a receipt
basis.
e.
TREASURY BILLS
Treasury bills are brought to account at cost. Bills in hand at the year end are also valued at cost. The difference between the book value and the proceeds obtained
when bills mature or are sold is credited to income as
interest.
f.
GOLD
Gold is brought to account at cost and the stock
at the year end is valued at market price.
CONFIDENTIAL