Accounting for Investments. Security transactions are accounted for on the trade date. Realized gains and losses on sales of investments are calculated on an identified cost basis. Interest income, including any amortization of discount or premium, is recorded on an accrual basis. SAMPLE AUTHORIZING RESOLUTION – PUBLIC AGENCY
Accounting for Investments. The Master Trusts may acquire limited partnership interests or membership interests in limited partnerships or limited liability companies (such ownership interests being referred to herein as “Private Equities”) which are subject to periodic capital calls; Valley shall monitor, review, and communicate to the Trustees all such calls as and when made and, generally, shall assist the Trustees in the administration of the investment of the Master Trusts in Private Equities. The Master Trusts may also invest in marketable securities and in investments other than Private Equities; Valley shall monitor and review the investment performance of all such other investments, communicate same to the Trustees, and, generally, assist the Trustees in the administration of the investments of the Master Trust.
Accounting for Investments. We account for investments in accordance with the guidelines on investment classification and valuation issued by the Reserve Bank of India. We classify all our investments into Held to Maturity, Available for Sale and ‘Held for Trading. Under each classification, we further categorize investments in to (a) government securities (b) other approved securities (c) shares (d) bonds and debentures, (e) subsidiaries and joint ventures and (f) others. ‘Held to Maturity’ securities are carried at their acquisition cost or at amortized cost, if acquired at a premium over the face value. Any premium over the face value of the notes acquired is amortized over its remaining period to maturity on a constant effective yield basis. We also evaluate our investments for any other than temporary diminution in its value. We compute the market value of our notes classified as Available for Sale and Held for Trading in accordance with the guidelines issued by the Reserve Bank of India. We amortize the premium, if any, over the face value of our investments in government securities classified as available for sale over the remaining period to maturity on a constant effective yield basis. We compute the market value our quoted investments based on the trades/quotes on the recognized stock exchanges, SGL account transactions, price list of Reserve Bank of India or prices declared by Primary Dealers Association of India jointly with Fixed Income Money Market and Derivatives Association (“FIMMDA”), periodically. We compute the market value our unquoted government securities included in the Available for Sale and Held for Trading categories as per the rates published by FIMMDA. We compute the market value of non-government securities, other than those quoted on the stock exchanges, wherever linked to the Yield-to-Maturity (“YTM”) rates, with a mark-up (reflecting associated credit risk) over the yield to maturity rates for government securities published by FIMMDA.
