20 NCAC 01G .0103. PRINCIPLES OF ACCOUNTING AND VALUATION

The principles of accounting and valuation shall be those principles of accounting and valuation in general use by public pension funds, provided that exchanges of fixed income securities shall be accounted for as provided in Rule .0104 of this Section.  Specifically the following procedures are to be used:

(1)           Net income shall be accrued on the full accrual basis of accounting.

(2)           Unrealized appreciation and depreciation shall not be recognized in the books of account or financial statements.

(3)           Fixed income securities shall be valued at amortized book‑value both for statement purposes and for calculation of the value of ownership units.

(4)           Equity securities and real estate shall be valued at original book value for statement purposes and at current market value for calculation of the value of ownership units.

(5)           Convertible fixed income securities held by the Equity Investment Fund shall be valued in the same manner as equity securities.

(6)           Securities or other investments held which have become ineligible for purchase by the investment fund shall be valued at current market value for calculation of ownership units.

(7)           Current market value shall equal the last trade shown on the Dow Jones Consolidated tape for the security on the last working day of the month.  If the security is not sold on a recognized stock exchange or was not sold on the last day of the month, the current market price will be the average of the bid and ask prices for the day.

 

History Note:        Filed as an Emergency Regulation Eff. July 1, 1979, for a

Period of 120 Days to Expire on October 29, 1979;

Statutory Authority G.S. 147‑69.3;

Made Permanent Eff. October 29, 1979;

Amended Eff. June 1, 1984; February 1, 1982.