REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To:
|
The
Board of Directors and Stockholders of
|
|
Fortune
Valley Treasures, Inc.
|
Opinion
on the Financial Statements
We
have audited the accompanying balance sheets of Fortune Valley Treasures, Inc. (the Company) as of December 31, 2017 and, and
the related statements of income, comprehensive income, stockholders’ equity, and cash flows for the period from September
1, 2017 to December 31, 2017, and the related notes (collectively referred to as the financial statements). In our opinion, the
financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017,
and the results of its operations and its cash flows for the period from September 1, 2017 to December 31, 2017, in conformity
with accounting principles generally accepted in the United States of America.
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed
in Note 3 to the financial statements, the Company had incurred substantial losses during the year, and has a working capital
deficit, which raises substantial doubt about its ability to continue as a going concern. Management’s plan in regards to
these matters are described in Note 3. These financial statements do not include any adjustments that might result from the outcome
of this uncertainty.
Basis
for Opinion
These
financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on
the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company
Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance
with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the
PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but
not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion.
Our
audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to
error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles
used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audits provide a reasonable basis for our opinion.
WWC,
P.C.
Certified
Public Accountants
We
have served as the Company’s auditor since December 4, 2017
San
Mateo, California
March
23, 2018
Fortune
Valley Treasure, Inc.
Balance
Sheet
At
December 31, 2017
Assets
|
|
|
|
Current assets
|
|
|
|
|
Prepaid expenses
|
|
$
|
5,895
|
|
Total current assets
|
|
|
5,895
|
|
|
|
|
|
|
Total Assets
|
|
$
|
5,895
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
Current liabilities
|
|
|
|
|
Accounts and taxes payable
|
|
|
23,276
|
|
Due to related parties
|
|
|
140,739
|
|
Total current liabilities
|
|
|
164,015
|
|
|
|
|
|
|
Total Liabilities
|
|
|
164,015
|
|
|
|
|
|
|
Stockholders’ Equity
|
|
|
|
|
Common
stock (3,000,000,000 shares authorized, 7,750,000 issued and outstanding at December 31, 2017)
|
|
|
7,750
|
|
Additional paid in capital
|
|
|
82,858
|
|
Accumulated deficit
|
|
|
(248,728
|
)
|
Total Stockholders’ Equity
|
|
|
(158,120
|
)
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity
|
|
$
|
5,895
|
|
See
accompanying notes to the financial statements
Fortune
Valley Treasures, Inc.
Statement
of Operations and Comprehensive Loss
For
the Period from September 1, 2017 to December 31, 2017
Net revenues (related party revenue $0)
|
|
$
|
-
|
|
Cost of revenues
|
|
|
-
|
|
Gross profit
|
|
|
-
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
Selling and marketing expenses
|
|
|
|
|
General and administrative expenses
|
|
|
49,490
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss
|
|
|
(49,490
|
)
|
|
|
|
|
|
Other income (expenses):
|
|
|
|
|
Interest income
|
|
|
-
|
|
Interest expense
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
|
|
Earnings before tax
|
|
|
(49,490
|
)
|
|
|
|
|
|
Income tax
|
|
|
-
|
|
|
|
|
|
|
Net loss
|
|
$
|
(49,490
|
)
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
Foreign currency translation gain
|
|
|
-
|
|
|
|
|
|
|
Comprehensive loss
|
|
$
|
(49,490
|
)
|
|
|
|
|
|
|
|
|
|
|
Loss per share
|
|
|
|
|
Basic and diluted earnings per share
|
|
$
|
(0.01
|
)
|
Basic and diluted weighted average shares outstanding
|
|
|
7,750,000
|
|
See
accompanying notes to the financial statements
Fortune
Valley Treasures, Inc.
Statements
of Stockholders’ Equity
For
the Years ended December 31, 2017
|
|
No. of
|
|
|
Common
|
|
|
Paid in
|
|
|
Retained
|
|
|
|
|
|
|
Shares
|
|
|
Stock
|
|
|
capital
|
|
|
earnings
|
|
|
Total
|
|
Balance as of September 1, 2017
|
|
|
7,750,000
|
|
|
|
7,750
|
|
|
|
82,858
|
|
|
|
(199,238
|
)
|
|
|
(108,630
|
)
|
Net loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(49,490
|
)
|
|
|
(49,490
|
)
|
Balance as of December 31, 2017
|
|
|
7,750,000
|
|
|
|
307,750
|
|
|
|
82,858
|
|
|
|
(248,728
|
)
|
|
|
(158,120
|
)
|
See
accompanying notes to the financial statements
Fortune
Valley Treasures, Inc.
Statement
of Cash Flows
For
the period from September 1, 2017 to December 31, 2017
|
|
2017
|
|
Cash flows from operating activities
|
|
|
|
|
Net income
|
|
$
|
(49,490
|
)
|
Increase in prepaid expenses
|
|
|
(62
|
)
|
Increase in accounts and other payables
|
|
|
4,369
|
|
Net cash used in operating activities
|
|
|
(45,183
|
)
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
Net cash used in investing activities
|
|
|
-
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
Borrowing and payments to related parties, net
|
|
|
45,183
|
|
Net cash provided by financing activities
|
|
|
45,183
|
|
|
|
|
|
|
Net increase/(decrease) of cash and cash equivalents
|
|
|
-
|
|
|
|
|
|
|
Effect of foreign currency translation on cash and cash equivalents
|
|
|
-
|
|
|
|
|
|
|
Cash and cash equivalents–beginning of period
|
|
|
-
|
|
|
|
|
|
|
Cash and cash equivalents–end of period
|
|
$
|
-
|
|
|
|
|
|
|
Supplementary cash flow information:
|
|
|
|
|
Interest received
|
|
$
|
-
|
|
Interest paid
|
|
$
|
-
|
|
Income taxes paid
|
|
$
|
-
|
|
See
accompanying notes to the financial statements
NOTE
1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Fortune
Valley Treasures, Inc. (formerly Crypto-Services, Inc.) was incorporated in the State of Nevada on March 21, 2014. As of the date
of this report, the Company’s did not conduct any business operations that generated revenues or cash flows to the Company.
Management is currently evaluating different investment opportunities.
NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis
of presentation
These
financial statements, accompanying notes, and related disclosures have been prepared pursuant to the rules and regulations of
the U.S. Securities and Exchange Commission (“SEC”). These financial statements have been prepared using the accrual
basis of accounting in accordance with the generally accepted accounting principles (“GAAP”) in the United States. The
Company’s fiscal year end has been changed to December 31. The Company’s financial statements are presented in US
dollars. These financial statements should be considered a transition report, and the results of operations cover the period from
September 1, 2017 to December, 31, 2017.
Use
of estimates
The
preparation of financial statements in conformity with accounting principles generally accepted in the United States of America
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements. The estimates and judgments will also affect the
reported amounts for certain revenues and expenses during the reporting period. Actual results may materially differ from these
estimates.
Prepaid
expenses
These
are annual payments paid to vendors and professional services providers for services to be used up over the course of one operating
period.
Income
taxes
The
Company accounts for income tax using an asset and liability approach and allows for recognition of deferred tax benefits in future
years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before
the Company is able to realize their benefits, or that future realization is uncertain.
Statutory
reserves
Statutory
reserves are referring to the amount appropriated from the net income in accordance with laws or regulations, which can be used
to recover losses and increase capital, as approved, and are to be used to expand production or operations. PRC laws prescribe
that an enterprise operating at a profit must appropriate and reserve, on an annual basis, an amount equal to 10% of its profit.
Such an appropriation is necessary until the reserve reaches a maximum that is equal to 50% of the enterprise’s PRC registered
capital.
Earnings
per share
The
Company computes earnings per share (“EPS”) in accordance with ASC Topic 260, “Earnings per share”. Basic
EPS is measured as the income or loss available to common shareholders divided by the weighted average common shares outstanding
for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common
shares (e.g., convertible securities, options, and warrants) as if they had been converted at the beginning of the periods presented,
or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e. those that increase income per share
or decrease loss per share) are excluded from the calculation of diluted EPS.
Financial
instruments
The
Company’s accounts for financial instruments in accordance to ASC Topic 820, “Fair Value Measurements and Disclosures,”
which requires disclosure of the fair value of financial instruments held by the Company and ASC Topic 825, “Financial Instruments,”
which defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances
disclosure requirements for fair value measures. The carrying amounts reported in the balance sheets for receivables and current
liabilities each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period
of time between the origination of such instruments and their expected realization and their current market rate of interest.
The three levels of valuation hierarchy are defined as follows:
|
●
|
Level
1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.
|
|
●
|
Level
2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs
that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial
instrument.
|
|
●
|
Level
3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.
|
Commitments
and contingencies
Liabilities
for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it
is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.
Comprehensive
income
Comprehensive
income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners.
Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive
income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.
The Company’s current component of other comprehensive income includes the foreign currency translation adjustment and unrealized
gain or loss.
Recent
accounting pronouncements
On
January 5, 2016, the FASB issued ASU 2016-01 “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement
of Financial Assets and Financial Liabilities”, which amends the guidance in U.S. GAAP on the classification and measurement
of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting
related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair
value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated
with the fair value of financial instruments. The new standard is effective for fiscal years and interim periods within those
fiscal years beginning after December 15, 2017. Management has determined that the new pronouncement did not have a material impact
on these financial statements.
On
February 25, 2016, the FASB issued ASU 2016-02 “Leases (Topic 842)”, its new standard on accounting for leases. ASU
2016-02 introduces a lessee model that brings most leases on the balance sheet. The new standard also aligns many of the underlying
principles of the new lessor model with those in ASC 606, the FASB’s new revenue recognition standard (e.g., those related
to evaluating when profit can be recognized). Furthermore, the ASU addresses other concerns related to the current leases model.
For example, the ASU eliminates the requirement in current U.S. GAAP for an entity to use bright-line tests in determining lease
classification. The standard also requires lessors to increase the transparency of their exposure to changes in value of their
residual assets and how they manage that exposure. The new model represents a wholesale change to lease accounting. As a result,
entities will face significant implementation challenges during the transition period and beyond, such as those related to:
Applying
judgment and estimating.
|
●
|
Managing
the complexities of data collection, storage, and maintenance.
|
|
●
|
Enhancing
information technology systems to ensure their ability to perform the calculations necessary for compliance with reporting
requirements.
|
|
●
|
Refining
internal controls and other business processes related to leases.
|
|
●
|
Determining
whether debt covenants are likely to be affected and, if so, working with lenders to avoid violations.
|
|
●
|
Addressing
any income tax implications.
|
The
new guidance will be effective for public business entities for annual periods beginning after December 15, 2018 (e.g., calendar
periods beginning on January 1, 2019), and interim periods therein. Management is still evaluating the accounting impact of the
new pronouncement.
On
March 15, 2016, the FASB issued ASU 2016-07 “Investments—Equity Method and Joint Ventures (Topic 323): Simplifying
the Transition to the Equity Method of Accounting”, which simplifies the equity method of accounting by eliminating the
requirement to retrospectively apply the equity method to an investment that subsequently qualifies for such accounting as a result
of an increase in the level of ownership interest or degree of influence. Consequently, when an investment qualifies for the equity
method (as a result of an increase in the level of ownership interest or degree of influence), the cost of acquiring the additional
interest in the investee would be added to the current basis of the investor’s previously held interest and the equity method
would be applied subsequently from the date on which the investor obtains the ability to exercise significant influence over the
investee. The ASU further requires that unrealized holding gains or losses in accumulated other comprehensive income related to
an available-for-sale security that becomes eligible for the equity method be recognized in earnings as of the date on which the
investment qualifies for the equity method. The guidance in the ASU is effective for all entities for fiscal years beginning after
December 15, 2016, including interim periods within those fiscal years; early adoption is permitted for all entities. Entities
are required to apply the guidance prospectively to increases in the level of ownership interest or degree of influence occurring
after the ASU’s effective date. Additional transition disclosures are not required upon adoption. Management has determined
that new pronouncement did not have a material effect on these financial statements.
On
March 17, 2016, the FASB issued ASU 2016-08 “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations
(Reporting Revenue Gross versus Net)”, which amends the principal-versus-agent implementation guidance and illustrations
in the Board’s new revenue standard (ASU 2014-09). The FASB issued the ASU in response to concerns identified by stakeholders,
including those related to (1) determining the appropriate unit of account under the revenue standard’s principal-versus-agent
guidance and (2) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s
control principle. Among other things, the ASU clarifies that an entity should evaluate whether it is the principal or the agent
for each specified good or service promised in a contract with a customer. As defined in the ASU, a specified good or service
is “a distinct good or service (or a distinct bundle of goods or services) to be provided to the customer.” Therefore,
for contracts involving more than one specified good or service, the entity may be the principal for one or more specified goods
or services and the agent for others. The ASU has the same effective date as the new revenue standard (as amended by the one-year
deferral and the early adoption provisions in ASU 2015-14). In addition, entities are required to adopt the ASU by using the same
transition method they used to adopt the new revenue standard. Management determine that the new policy had no material impact
on these financial statements.
On
March 30, 2016, the FASB issued ASU 2016-09 “Compensation—Stock Compensation (Topic 718): Improvements to Employee
Share-Based Payment Accounting”, which simplifies several aspects of the accounting for employee share-based payment transactions
for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding
requirements, as well as classification in the statement of cash flows. The ASU is for annual reporting periods beginning after
December 15, 2016, including interim periods within those annual reporting periods. Management has determined that the new standard
did not have a material impact on these financial statements.
The
Company is currently assessing the above the accounting pronouncements and their potential impact from their adoption on the financial
statements.
NOTE
3 - GOING CONCERN
The
accompanying financial statements have been prepared in conformity with generally accepted accounting principles which contemplate
continuation of the Company as a going-concern basis. The going-concern basis assumes that assets are realized, and liabilities
are settled in the ordinary course of business at amounts disclosed in the financial statements. The Company’s ability to
continue as a going concern depends upon its ability to market and sell its products to generate positive operating cash flows.
For the period from September 1, 2017 to December 31, 2017, the Company reported net losses of $49,490. As of December 31, 2017,
the Company had working capital deficit of approximately $158,120. In addition, the Company had net cash outflows of $45,183 from
operating activities during the period from September 1, 2017 to December 31, 2017. These conditions raise substantial doubt as
to whether the Company may continue as a going concern.
In
an effort to improve its financial position, the Company’s management is working to identify profitable operating businesses
for acquisition, and concurrently raise capital through the sales of equity or debt securities to investors for cash to fund operations
and expand. The Company also continues to rely on related parties to provided financing and management services at costs that
may not be indicative of the prevailing market rate for such services.
If
the Company is not able to generate positive operating cash flows, raise additional capital, and retain the services of certain
related parties, it may become insolvent.
NOTE
4 - INCOME TAXES
The
Company’s does not have operations that generates taxable profits. The company generated a loss before taxes during the
period from September 1, 2017 to December 31, 2017. Management has decided to not recognize a deferred tax asset as Management
is not able to estimate when it will generate taxable profits.
NOTE
5 - RELATED PARTY TRANSACTIONS
Amounts
due to related parties as of December 31, 2017:
Mr. Yumin Lin
|
|
Director, CEO, Shareholder
|
|
$
|
119,239
|
|
Mr. Xinlong Shen
|
|
Former Director of the Company
|
|
|
21,500
|
|
|
|
|
|
$
|
140,739
|
|
The
outstanding payables due to Mr. Yumin Lin and Xinlong Shen are comprised of working capital advances and borrowings for general
corporate purposes. These amounts are due on demand and are non-interest bearing.
The
Company’s registered address is at a commercial building owned by Ms. Qingmei Lin; she is the wife of Mr. Yumin Lin. The
Company has not charged for the use of such premises, and there is no rental agreement.
NOTE
6 - SUBSEQUENT EVENTS
Company
evaluates subsequent events that have occurred after the balance sheet date but before the financial statements are issued. There
are two types of subsequent events: (1) recognized, or those that provide additional evidence with respect to conditions that
existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and
(2) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet
but arose subsequent to that date.
There
were no events subsequent to December 31, 2017 that Management deems necessary for disclosure if not otherwise already disclosed
in these financial statements.
Item
2.
MANAGEMENT
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The
following discussion and analysis should be read in conjunction with, and is qualified in its entirety by, Fortune Valley Treasures,
Inc.’s audited annual financial statements and the related notes thereto, each of which are included as an exhibit to our
Annual Report on Form 10-K filed with the SEC on November 24, 2017. This discussion contains certain forward-looking statements
that involve risks and uncertainties, as described under the heading “Forward-Looking Statements” in this Transition
Report on Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements. The Management
Discussion and Analysis of Financial Condition and Results of Operations below is based upon only the financial performance of
Fortune Valley Treasures, Inc.
Company
Overview
We
were incorporated in the State of Nevada on March 21, 2014. The Company intends to investigate and, if such investigation warrants,
acquire a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business
objective will be to achieve long-term growth potential through a combination with a business rather than immediate, short-term
earnings. There can be no assurance that the Company will ever consummate a business combination and achieve long-term growth
potential or immediate, short-term earnings from any business combination the Company enters into.
Results
of Operations
Our
operating results for the Four months ended December 31, 2017 and 2016 are summarized in the table below.
|
|
For the Four Months Ended
|
|
|
For the Four Months Ended
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Revenue
|
|
$
|
-
|
|
|
$
|
-
|
|
General and administrative
|
|
$
|
49,490
|
|
|
$
|
23,303
|
|
Net Loss
|
|
$
|
(49,490
|
)
|
|
$
|
(23,303
|
)
|
Revenues
We
did not generate any revenue during the Four-month period ended December 31, 2017 and 2016.
Operating
Expenses
Our
expenses were $49,490 for the Four months ended December 31, 2017 as compared to $23,303 for the Four months ended December 31,
2016. The increase for the Four months was directly related to the expenses related to consulting and professional fees related
to our reporting responsibilities with the Securities and Exchange Commission (the “SEC”).
Capital
Resources and Liquidity
Working
Capital
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Current Assets
|
|
$
|
5,895
|
|
|
$
|
4,345
|
|
Current Liabilities
|
|
$
|
164,015
|
|
|
$
|
31,464
|
|
Working Capital (Deficiency)
|
|
$
|
(158,120
|
)
|
|
$
|
(27,119
|
)
|
Current
Assets was $5,895 ended December 31, 2017 as compared to $4,345 ended December 31, 2016. The increase was due to increase in prepaid
expense to OTC markets, for our annual quotation fee for the OTCQB. Current liabilities was $164,015 as of December 31, 2017 compared
to $31,464 as of December 31, 2016. The increase was mainly due to an increase of $132,551 for amounts owing to a related party
for paying operating expenses of the Company.
Cash
Flows
|
|
For the Four Months Ended,
|
|
|
|
December 31, 2017
|
|
|
December 31, 2016
|
|
Net cash used in operating activities
|
|
$
|
(45,183
|
)
|
|
$
|
(18,500
|
)
|
Net cash used in investing activities
|
|
$
|
-
|
|
|
$
|
-
|
|
Net cash provided by financing activities
|
|
$
|
45,183
|
|
|
$
|
18,500
|
|
Net change in cash
|
|
$
|
-
|
|
|
$
|
-
|
|
Net
cash used in operations was $45,183 for the four-months period ended December 31, 2017 compared to $18,500 for the period ended
December 31, 2016. The increase in cash outflow is because of operating expense being paid by a related party.
Net
cash used in investing activities and financing activities was $0 for the period ended December 31, 2017.
We
have substantial capital resource requirements and have incurred significant losses since inception. As of December 31, 2017,
we had $0 in cash. Based upon our current business plans, we will need considerable cash investments to be successful. Such capital
requirements are in excess of what we have in available cash and what we currently have commitment for. Therefore, we do not have
enough available cash to meet our obligations over the next twelve (12) months.
Off-balance
sheet arrangements
The
Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change
on the Company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital
resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction,
agreement or other contractual arrangement to which an entity unconsolidated with the Company is a party, under which the Company
has (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent
interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for
such assets.