Synthesis

The amount of cash surrender rises steadily over time as contributions are made to the
contract or annuity. The value of the valuation gain is the excess of the premiums and interest income
over the expense of the life insurance part of the bundle (if any). This offers the insured an advantage
that can either be repaid later in life or used as collateral for the loan.

Cash surrender value is the amount of cash that an individual can receive upon cancelation of
an insurance policy or annuity. This number is normally linked to the entire life insurance policy, which
has an integrated investment feature. Term strategies should not have the value of cash surrender.

Cash surrender value accumulates on a tax-deferred basis before the program is ended. At
that point, the policy holder shall be liable for income taxes on that portion of the transfer value which
exceeds the sum of the premiums charged.

Accounting policies of Fund and Other Investment

Financial assets and financial liabilities at fair value through profit or loss

Valuation of investments in other funds

The Fund’s investments in other funds (‘Investee Funds’) are subject to the terms and
conditions of the respective Investee Fund’s offering documentation. The investments in Investee
Funds are valued based on the latest available redemption price of such units for each Investee Fund,
as determined by the Investee Funds’ administrators. The Fund reviews the details of the reported
information obtained from the Investee Funds and considers:

. the liquidity of the Investee Fund or its underlying investments;

. the value date of the net asset value (NAV) provided;

. any restrictions on redemptions; and

. the basis of accounting and, in instances where the basis of accounting is other than fair value, fair
valuation information provided by the Investee Fund’s advisors.

If necessary, the Fund makes adjustments to the NAV of various Investee Funds to obtain the
best estimate of fair value. Other net changes in fair value on financial assets and financial liabilities at
fair value through profit or loss in the statement of comprehensive income include the change in fair
value of each Investee Fund.

Reflection

In the process of my comprehension on Funds and Other Investments, it gives me a valuable

opportunity to not just learn about how it affects to an entity but it also gives me an insight how to deal
with it on my own accord.
 Starting with the definition of investment property cash surrender value, my excitement begins
with the broad desire to learn more about the way in which I can use this learning in the future. Over
the course of my readings and solving, that spark of interest led me to discover the fascinating
purpose of investments where it is use for so many ways. As typical as to any subject of Accounting,
this topic has so many jargons thus involves a long process of understanding. Due to the broad focus
of other investment with which I started, I spent dozens of hours and days of comprehension,
identifying, analyzing, and interpretations through the definitions and examples in the book. Likewise, I
scoured collections of case problems to practice my mastery in the field of the topic.

For a month, I also focus knowing the measurement in long-term fund, fund under the
administration of the entity and trustee, sinking fund, other fund and the accounting for fund.

I have always been an average thinker, but throughout my perseverance to learn and with the
help of my co-study friends, I have sharpened my average analysis skills. I have also ventured
searching examples in the internet and browse tutorials on YouTube.

Although all the readings in this subject yielded interesting discoveries, I ultimately concluded
that funds and other investment is a very good help to put a great impact in an entity to boost the
economy of a country.