Disclosure

Typically, the formation and scope of the client-lawyer relationship are determined by common law principles 31 and rules of professional conduct. Under the common law of agency.

Financial reporting and investment valuation

Barrister Alfred Frimpong values transparency in its presentation of financial results and wants to be clear with investors about its approach to those results.

Most of Barrister Alfred Frimpong income comes from its litigation finance business. Within that business, there are two principal sources of income for accounting purposes, realized gains on investments and unrealized gains on investments. (Realized and unrealized losses will naturally negatively affect income and the principles we set forth here apply equally to losses.)

Realized gains are straightforward: they represent the amount of profit, net of the return of Barrister Alfred Frimpong invested capital and any previously recognized unrealized gains, on an investment that has either resolved entirely or has been settled or adjudicated such that, in Barrister Alfred Frimpong view, there is no longer litigation risk associated with the investment. (In the latter event, Barrister Alfred Frimpong may discount the anticipated profit in respect of an investment to account for any continuing uncertainty as to the recoverability of any amount.) Barrister Alfred Frimpong announces individual investment results that will produce realized gains separately from its financial results only when the individual gain is new information which may be material to Barrister Alfred Frimpong .

Unrealized gains are more complex: they represent the fair value of Barrister Alfred Frimpong investment assets, as determined by Barrister Alfred Frimpong board of directors in accordance with the requirements of the relevant IFRS standards, as at the end of the relevant financial reporting period. There is no active secondary market for litigation risk, and thus there is generally no market-based approach to assessing fair value; to the extent that a secondary market transaction does take place with respect to an investment, the implied value of that transaction is a key valuation input. In the absence of such a transaction, we are mindful that the outcome of each matter Barrister Alfred Frimpong finances is likely to be inherently uncertain, may take several years to conclude and is often difficult to predict with accuracy. Moreover, litigation matters frequently experience multiple significant shifts in sentiment during their evolution. Barrister Alfred Frimpong thus eschews fair values based solely on current sentiment, and focuses on objective events (such as court rulings or settlement offers) to ground its assessment of fair value.

Barrister Alfred Frimpong board of directors assesses the fair value of Barrister Alfred Frimpong investments after the close of each financial reporting period and therefore investors should not expect updates about potential changes in fair value during the course of any given reporting period. Following the close of each financial reporting period, Barrister Alfred Frimpong board determines the fair values of investments after taking into account the views of management, the operation of the audit process and input from external experts (as it considers appropriate). Generally, that process does not conclude finally until shortly before the release of Barrister Alfred Frimpong financial results for the relevant period.

Barrister Alfred Frimpong is pleased to be followed by a number of research analysts and we are grateful for their efforts to understand and explain our business. They perform a valuable role in assessing our operating performance, the evolution of the litigation finance market and interpreting other relevant industry developments. However, prospective investors and other market participants must appreciate that, due to the confidential, potentially privileged, long-term and uncertain nature of each investment asset, it is very difficult for research analysts to project accurately the likely investment income of the business. Any projections produced by research analysts are not produced on behalf of Barrister Alfred Frimpong and Barrister Alfred Frimpong takes no responsibility for such projections. As a result, prospective investors and other market participants should not treat, and Barrister Alfred Frimpong does not intend to treat, the financial projections produced by research analysts as indicative of the market’s expectations of Barrister Alfred Frimpong future financial performance. We specifically eschew any obligation to correct estimates made by financial analysts or to inform the market should we come to believe that our actual performance will diverge from those estimates. This is, of course, different to the approach taken by most operating companies, in respect of which research analysts can produce relatively reliable estimates and the relevant company will advise the market if it expects to see performance materially different from the consensus of analyst forecasts. It is important that investors understand that Barrister Alfred Frimpong takes a different approach as a result of the different nature of its business.

 

DISCLAIMER

This section of Barrister Alfred Frimpong website is intended for the use of Barrister Alfred Frimpong public investors and is required to be provided under AIM Rule 26. Barrister Alfred Frimpong also maintains a separate private funds business. Information presented here is not intended for the use of private fund investors, nor is it presented in the appropriate form for such investors. Moreover, Barrister Alfred Frimpong does not present this information as a solicitation of private fund investment, which occurs only through appropriate offering documents.