Real Estate Investment Funds: Financial reporting - Alfi

valuation uncertainty
6. What actions should
be taken by the Central
Administration/
Custodian?
a. Central Administrators should work closely
with the Fund’s Management to assess:
What values should be included in the
accounts for the Fund NAV calculation, if
the independent valuation report includes a
valuation uncertainty paragraph or a caveat
to the valuation. The ultimate responsibility
lies at Board level, who can ultimately
decide whether or not to include impairment
in the accounts.
What additional disclosures (if any) in the
notes to the accounts of the financial
statements are required.
b. No special actions need to be made by
Custodians with respect to the above.
The provisions of Chapter E of IML Circular
91/75 (the "Circular") are applicable and
provide the regulatory framework regarding
all Luxembourg funds irrespective of their
legal form or regime. According to the
Circular, the custodian "has to have
knowledge at any time on how the assets of
the fund have been invested and where and
how these assets are available". The custody
obligation has to be understood in the sense
of supervision rather than safekeeping.
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