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Inspect the form of the value
The original record has distributed 40 and residual value 110. Total entered value is 150, but the record does not show that 150 has reached the investor as cash. The residual can depend on valuation assumptions and future realization.
Use the correct amount for a cash question
A bill due today cannot be assumed funded by the NAV figure without a specified realization or financing transaction. A possible sale also requires its price, costs, date and transfer terms. The arithmetic of total value does not supply those facts.
| Question | Relevant record |
|---|---|
| What has been returned? | Distributions and their dates |
| What remains valued? | Residual value at its date |
| What cash is available for a call? | Liquid balances and timed receipts |
Keep estimate and receipt separate
A later mark-down can reduce reported total value without reversing a previous distribution. Conversely, converting a residual holding to a distribution can change composition while leaving total value unchanged in a simplified case.
Name uncertainty without discarding the estimate
Residual value remains useful when its date and basis are clear. Do not treat it as guaranteed cash, and do not set an unavailable NAV to zero merely to complete a ratio. An unknown input needs a stated limitation.