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These excerpts taken from the ORH 10-K filed Feb 27, 2009. Use of
Estimates
The financial statements have been prepared in accordance with
and comply with accounting principles generally accepted in the
United States of America. The preparation of financial
statements in accordance with accounting principles generally
accepted in the United States of America requires the use of
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amount of revenues and expenses during the reporting
period. Although these estimates are based on management’s
best knowledge of current events and actions, actual results
ultimately may differ from those estimates.
Table of Contents
HWIC ASIA
FUND
NOTES TO
THE FINANCIAL STATEMENTS — 16 AUGUST 2006
(Continued)
A summary of the more important accounting policies, which have
been applied consistently, is set out below.
Significant
Accounting Policies
Investments
All purchases and sales of investments are recognised on the
trade date, which is the date that the Company commits to
purchase or sell the asset. Cost of purchase includes
transaction cost. Investments are subsequently carried at fair
value. Fair values for quoted equity instruments are based on
quoted bid prices at period-end. In the absence of bid prices,
the last meaningful trading prices at period-end are used. Fair
values for investments held in unquoted funds are based on the
Net Asset Value (NAV) per share at period-end.
Gains and losses arising from changes in the fair value of
investments are included in the statement of operations in the
period in which they arise. When the financial assets are
disposed of or are impaired, the related fair value gains or
losses are included in the statement of operations.
Foreign
currency translation
(i) Functional and presentation currency
Items included in the financial statements of the Company are
measured using the currency of the economic environment of the
investors (the “functional currency”). The financial
statements of the Company are presented in United States Dollars
(“USD”), which is the functional currency of the
Company.
Management has determined the functional currency of the Company
to be USD. In making this judgment, management evaluates among
other factors, the regulatory and competitive environment, the
denomination of subscription/redemption and the fee structure as
well as the economic environment in which the financial assets
are invested of the Company and in particular, the economic
environment of the investors.
(ii) Transactions and balances
Foreign currency transactions are translated into USD using the
exchange rates prevailing at the dates of transactions. Foreign
exchange gains and losses resulting from the settlement of such
transactions and from the translation at period-end exchange
rates of monetary assets and liabilities denominated in foreign
currencies are recognised in the Statement of Operations.
Cash
and cash equivalents
Cash comprises cash at bank.
Table of Contents
HWIC ASIA
FUND
NOTES TO
THE FINANCIAL STATEMENTS — 16 AUGUST 2006
(Continued)
Derivative
financial instruments
Derivative financial instruments comprise futures contracts.
Derivatives are initially recognised at fair value on the date
on which the contract is entered into and are subsequently
re-measured at their fair value. Fair values are based on quoted
market prices in active markets. All derivatives are carried in
assets when fair value is positive, and as liabilities when
amounts are payable by the Company.
The best evidence of the fair value of a derivative at initial
recognition is the transaction price (i.e., the fair value of
the consideration given or received). Subsequent changes in the
fair value of any derivative instrument are included in the
Statement of Operations.
Investment
income
Dividend income and other distributions are recognised on the
ex-dividend date and interest income on the accrual basis.
Related
Parties
Related parties are individuals and companies where the
individual or company has the ability, directly or indirectly,
to control the other party or exercise significant influence
over the other party in making financial and operating decisions.
Use of Estimates The financial statements have been prepared in accordance with and comply with accounting principles generally accepted in the United States of America. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates.
Table of ContentsHWIC ASIA FUND NOTES TO THE FINANCIAL STATEMENTS — 16 AUGUST 2006 (Continued) A summary of the more important accounting policies, which have been applied consistently, is set out below. Significant Accounting Policies Investments All purchases and sales of investments are recognised on the trade date, which is the date that the Company commits to purchase or sell the asset. Cost of purchase includes transaction cost. Investments are subsequently carried at fair value. Fair values for quoted equity instruments are based on quoted bid prices at period-end. In the absence of bid prices, the last meaningful trading prices at period-end are used. Fair values for investments held in unquoted funds are based on the Net Asset Value (NAV) per share at period-end. Gains and losses arising from changes in the fair value of investments are included in the statement of operations in the period in which they arise. When the financial assets are disposed of or are impaired, the related fair value gains or losses are included in the statement of operations. Foreign currency translation (i) Functional and presentation currency Items included in the financial statements of the Company are measured using the currency of the economic environment of the investors (the “functional currency”). The financial statements of the Company are presented in United States Dollars (“USD”), which is the functional currency of the Company. Management has determined the functional currency of the Company to be USD. In making this judgment, management evaluates among other factors, the regulatory and competitive environment, the denomination of subscription/redemption and the fee structure as well as the economic environment in which the financial assets are invested of the Company and in particular, the economic environment of the investors. (ii) Transactions and balances Foreign currency transactions are translated into USD using the exchange rates prevailing at the dates of transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Operations. Cash and cash equivalents Cash comprises cash at bank.
Table of ContentsHWIC ASIA FUND NOTES TO THE FINANCIAL STATEMENTS — 16 AUGUST 2006 (Continued) Derivative financial instruments Derivative financial instruments comprise futures contracts. Derivatives are initially recognised at fair value on the date on which the contract is entered into and are subsequently re-measured at their fair value. Fair values are based on quoted market prices in active markets. All derivatives are carried in assets when fair value is positive, and as liabilities when amounts are payable by the Company. The best evidence of the fair value of a derivative at initial recognition is the transaction price (i.e., the fair value of the consideration given or received). Subsequent changes in the fair value of any derivative instrument are included in the Statement of Operations. Investment income Dividend income and other distributions are recognised on the ex-dividend date and interest income on the accrual basis. Related Parties Related parties are individuals and companies where the individual or company has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. These excerpts taken from the ORH 10-K filed Feb 28, 2008. Use of
Estimates
The financial statements have been prepared in accordance with
and comply with accounting principles generally accepted in the
United States of America,. The preparation of financial
statements in accordance with accounting principles generally
accepted in the United States of America requires the use of
estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amount of revenues and expenses during the reporting
period. Although these estimates are based on management’s
best knowledge of current events and actions, actual results
ultimately may differ from those estimates. A summary of the
more important accounting policies, which have been applied
consistently, is set out below.
Use of Estimates The financial statements have been prepared in accordance with and comply with accounting principles generally accepted in the United States of America,. The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of current events and actions, actual results ultimately may differ from those estimates. A summary of the more important accounting policies, which have been applied consistently, is set out below. | EXCERPTS ON THIS PAGE:
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