Scope of Services: IFRS 13 Valuations for Funds (Carta APAC)
Service | Carta responsibilities | Client responsibilities |
Onboarding | Track and update list from Client of who can direct Carta on valuations. | Provide Carta with a list of individuals who can direct Carta on valuations, and inform Carta of any applicable changes. |
Source data collection | Inform Client of any missing data required to complete valuations. | Provide Carta with the required Data Request Template, to the extent information is available, for each company to be valued (“Subject Company”). Completed Data Request Templates are sent to asc820@carta.com to initiate the valuation. |
Inform Client of perceived audit risk associated with limited, available data, if applicable. | ||
Valuation policy | Upon Client’s request, provide advice on questions related to developing or refining a valuation policy. | Provide Carta with details on Client’s valuation policy to inform the assumptions that Carta will use in completing valuations. |
Confirm with Client, in writing, Client’s valuation policy prior to delivering any valuations. | Review Client’s valuation policy with Client’s auditor to ensure Client’s auditor is comfortable with the general framework prior to starting the valuation engagement with Carta. | |
Inform Client of perceived audit risk associated with Client’s valuation policy. | ||
Comply with Client’s valuation policy unless directed otherwise in writing. If directed in writing to complete a valuation outside of Client’s valuation policy, Carta will inform Client of perceived audit risk associated with such variance. | ||
Delivery timing | Deliver to Client an initial draft valuation within 15 business days after receipt of all required source data. | After initial draft valuation has been delivered, Client may reach out to asc820@carta.com with any follow up questions on the valuations. |
Iterations of the initial draft will be delivered within 3 business days of the requested update. | ||
Audit support | Carta will respond to written audit questions from Client directed to Carta within 5 business days.² | Inform Carta of any written audit questions. If additional questions arise after Carta has responded, Carta will schedule a call with the Client and Auditor. |
Respond to audit questions relating to the selected multiples, weighting of multiple indications, and the incorporation of market trends into the analysis. (Note: Breakpoint calculations will not be provided in Excel format.) | Provide the audit team with all source documents used in the valuation. | |
Carta will provide audit support for the market driven inputs relied on in the valuation, including revenue and/or EBITDA multiples, volatility and risk free rate. | Respond to audit questions relating to the daily operation of the business, historical performance, or future performance of Client’s portfolio companies.* |
Carta will conduct a valuation of Client's holdings based on information provided by Client or Client’s portfolio companies. When making a determination of value, Carta will rely on the completeness and accuracy of the materials and information provided by or on behalf of Client, and Client represents and warrants that the information provided to Carta is true and correct.
Client acknowledges that: (a) Client is solely responsible for the accuracy of the information provided by Client or Client’s portfolio companies to Carta, and (b) Carta will not independently verify any information provided.
* If a selection was made in the valuation by Client against the guidance of the Carta valuation professional on the engagement, answering any audit questions relating to the impact of such selection shall be the responsibility of Client.
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is not to be construed as legal, financial, accounting or tax advice and is for informational purposes only. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein.
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