Elements of Present Value

1. Uncertainty price bearing
2. Variations timing of future CF expectations
3. Other factors
4. Time value of $$
5. Estimated future CF 

Useful Financial Information

The objective of financial reporting is to provide financial information that is useful to its primary users.

Useful FS fundamental qualitative characteristics:

• Relevance 
• Predictive value
• Confirming value
• Materiality
• Faithful Representation
• Completeness
• Neutrality
• Freedom from error

Enhancing Characteristics:

• Comparability
• Verifiability
• Timeliness
• Understandability

Constraints:

• Cost/Benefit

Reference: Statements of Financial Accounting Concepts (SFAC) No. 8

Carried Position - VC

To be in a carry position means that a fund is in a profit position, & because of this position, the profit can be allocated to the GP in excess of the amount/percentage that the GP had originally contribute.

The amount to be allocated will be based on a carried interest percentage,which is different from the partnership percentage for the partners of the fund (typically 20% to the GP and 80% to the LP as opposed to partnership percentage of 1% and 99%, respectively).