NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (continued)
(ii) The value of assets which are listed or dealt in on any stock exchange is based on the last available price on the stock exchange which is normally the principal market for such assets.
(iii) The value of assets dealt in on any other Regulated Market is based on the last available price. (iv) In the event that any assets are not listed or dealt in on any stock exchange or on any other Regulated Market, or if, with respect to assets listed or dealt in on any stock exchange, or other Regulated Market as aforesaid, the price as determined pursuant to sub-paragraph (ii) or (iii) is not representative of the fair market value of the relevant assets, the value of such assets will be based on the reasonably foreseeable sales price determined prudently and in good faith by the Board of Directors of the SICAV.
(v) The liquidating value of option contracts not traded on exchanges or on other Regulated Markets shall mean their net liquidating value determined, pursuant to the policies established by the Board of Directors of the SICAV, on a basis consistently applied for each different variety of contracts. The liquidating value of futures, forward or options contracts traded on exchanges or on other Regulated Markets shall be based upon the last available settlement prices of these contracts on exchanges and Regulated Markets on which the particular futures, forward or option contracts are traded by the Fund; provided that if a futures, forward or options contract could not be liquidated on the day with respect to which net assets are being determined, the basis for determining the liquidating value of such contract shall be such value as the Board of Directors of the SICAV may deem fair and reasonable. Swaps will be valued at their market value established by reference to the applicable interest rates' curve.
(vi) Units or shares of open-ended UCIs will be valued at their last determined and available net asset value or, if such price is not representative of the fair market value of such assets, then the price shall be determined by the Board of Directors of the SICAV on a fair and equitable basis.
(vii) The credit default swap positions and the contracts for differences are valued in accordance with valuation principles decided by the Board of Directors of the SICAV on the basis of their Marked to Market price by using standard market practices.
(viii) All other securities and other assets will be valued at fair market value as determined in good faith pursuant to the procedures established by the Board of Directors of the SICAV.
(ix) The Board of Directors of the Management company valued the following security GOWEX at zero based on the recommendation of the Investment Manager and in view of the fact that the company had gone into voluntary insolvency on 6 July 2014. The security is held in the Europe Absolute Sub-Fund.
b) Realised profit / (loss) on sale of securities
Profit and loss on investment securities sold are computed on the basis of average cost.
c) Foreign exchange conversion
The net asset value of the Sub-Funds are expressed as follows: Eastern Europe in EUR
Euro High Yield Bond in EUR Europe in EUR
Europe Absolute in EUR
Europe Long Short Dynamic in EUR Germany in EUR
Global Inflation Linked Bond in EUR
Global Inflation Linked Bond Short Duration in EUR Global Inflation Linked Bond Short Duration in EUR US Mid Cap in USD
All assets valued in a currency other than the base currency of the Sub-Fund are converted to the base currency at the exchange rates prevailing at December 31, 2014.
The exchange rates used as at December 31, 2014 for the Sub-Funds Danske Invest SICAV - Eastern Europe, Danske Invest SICAV - Europe, Danske Invest SICAV - Europe Absolute, Danske Invest SICAV - Europe Long-Short Dynamic, Danske Invest SICAV - Euro High Yield Bond, Danske Invest SICAV - Germany*, Danske Invest SICAV - Nordic Corporate Bond* and Danske Invest SICAV - US Mid Cap* are as follows:
Notes to the audited Financial Statements (continued)
NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (continued) 1 CHF = 0.831242 EUR 1 CZK = 0.036066 EUR 1 DKK = 0.134288 EUR 1 GBP = 1.279862 EUR 1 HKD = 0.106074 EUR 1 HUF = 0.003179 EUR 1 NOK = 0.110671 EUR 1 PLN = 0.233314 EUR 1 RON = 0.222934 EUR 1 RUB = 0.014208 EUR 1 SEK = 0.106263 EUR 1 TRY = 0.353367 EUR 1 USD = 0.822639 EUR
The exchange rates used as at December 31, 2014 for the Sub-Fund Danske Invest SICAV - Global Inflation Linked Bond and Danske Invest SICAV - Global Inflation Linked Bond Short Duration* are as follows:
1 AUD = 0.674446 EUR 1 CAD = 0.711292 EUR 1 DKK = 0.134315 EUR 1 GBP = 1.283115 EUR 1 JPY = 0.006885 EUR 1 NZD = 0.644068 EUR 1 SEK = 0.106495 EUR 1 USD = 0.823249 EUR * See Note 1
Income and expenses expressed in a currency other than the base currency of the Sub-Fund are converted at the applicable exchange rate prevailing at the transaction date.
d) Cost of investment securities
The acquisition cost of investment securities in each Sub-Fund expressed in currencies other than the currency of denomination is converted to the base currency at the exchange rates prevailing at the purchase date.
e) Income/charges from investments
Dividends are recognized as income on the date the securities are first quoted ex-dividend, to the extent information thereon is reasonably available to the Fund. Bank interest, interest on fixed income securities and interest on Contracts for difference are accrued for each net asset valuation.
f) Forward foreign exchange contracts
Profit and loss arising from un-matured forward foreign exchange contracts are determined on the basis of the applicable forward exchange rates at the valuation date, and are recorded in the combined statement of net assets. Realised profit or loss on forward foreign exchange contracts are recorded in the statement of operations and changes in net assets.
g) Formation expenses
The costs and expenses incurred in connection with the formation of the Fund and the initial issue of Shares by the Fund, all legal and printing costs, certain launch expenses (including advertising costs) and preliminary expenses are amortized over a five year period.