Real Estate Investment Funds: Financial reporting - Alfi

table of contents
chapter V - FINANCIAL STATEMENTS AND DISCLOSURES 23
1. What does a typical set of financial statements include? 24
2. Is there a requirement to disclose property portfolio information? 24
3. What are the typical contents of the related party disclosure note? 25
4. What are the requirements for risk disclosures? 25
chapter VI - SPECIFIC VEHICLES 26
1. What specific issues arise with the use of the SICAR and the SIF for
real estate investment? 27
2. What specific valuation issues arise with the use of the SICAR or SIF? 27
chapter VII - HOW SHOULD THE VALUATION PROCESS BE ORGANIsED
WHEN CALCULATING THE FUND NAV OF A FOREF? 28
1. IOSCO’s Nine Principles of Valuation 29
chapter VIII - WHAT INFORMATION IS REQUIRED WHEN CALCULATING
THE FUND NAV OF A FOREF? 30
1. Direct source information 31
2. Additional supporting information 31
3. Use of information received from investee funds 31
4. What is the recommended method for calculating the Fund NAV of
a Fund of Real Estate Funds? 32
chapter IX - HOW DOES INCREASED VALUATION UNCERTAINTY
AFFECT FUND NAV PRODUCTION? 33
1. With respect to investee property portfolios 34
2. With respect to financial position of investee funds 34
3. With respect to delayed information from investee funds 34
chapter X - WHAT OPTIONS DO FOREFS HAVE IN RESPECT OF THE ISSUES
IDENTIFIED ABOVE? 35
1. Delay reporting of NAVs/financial statements to collect more
up-to-date information 36
2. Suspend issuance of the FOF NAV 36
3. Continue to produce Fund NAVs/financial statements within
normal timeframes 37
chapter XI - HOW MAY THIS IMPACT THE AUDIT OF FOF
FINANCIAL STATEMENTS? 38
1. Additional information requests 39
2. Modifications to audit reports 39
ANNEX: USEFUL DEFINITIONS 40
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