TNAG-2475-FCO40-3605-Hong-Kong-exchange-fund-report-and-accounts-for-1991-1992 — Page 44

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, Certificates of Deposit and Currency

Options bought during the year, the purchase price plus

brokerage, stamp duty etcetera, but excluding accrued

interest.

Year end valuations. Bonds, Notes, Certificates of Deposit

and Currency Options are valued at mid-market prices on the

last business day at the place where the market is made.

Where depositories quote different mid-market prices for the

obligations or option contracts, 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.

same

a.

EQUITIES

Listed shares are valued at the lower of cost or

market value at the year end. Unlisted shares, other than

those of the Overseas Trust Bank Limited which have been

written down to $1,

to $1, are valued at cost. Dividends are

accounted for on a receipt basis.

e. TREASURY BILLS, BANKERS' ACCEPTANCES, PROMISSORY NOTES,

REPURCHASE AGREEMENTS AND CENTRAL BANK FACILITY

Treasury Bills, bankers' acceptances,

acceptances, promissory

notes, repurchase agreements and central bank facility are

brought to account and valued at the year end at cost. The

difference between the book value and the proceeds obtained

when the treasury bills, bankers' acceptances, promissory

notes and repurchase agreements mature or are sold is

credited to income as interest.

GOLD

Gold is brought to account at cost and the stock

at the year end is valued at market price.

CONFIDENTIAL