{ "tool_id": "art-374-test-nav-error-materiality", "note": "golden_hash filled by node golden-parity.test.mjs --update. Vectors cover: ordinary immaterial/material cases, exactly-at-threshold and both-sides-by-smallest-increment boundary fixtures for BOTH the industry half-cent absolute and 1% relative conventions, fund-declared-policy divergence from the industry default (both directions), affected-period/reprocessing-indication math, and the zero-corrected-NAV structural-error edge case.", "vectors": [ { "name": "immaterial-small-error", "description": "Tiny error, well under both industry conventions. Industry-default policy (none supplied).", "policy_parameters": { "fund_id": "FUND-A", "valuation_date": "2026-07-18", "erroneous_nav_per_share": 10.001, "corrected_nav_per_share": 10 }, "output_payload": { "fund_id": "FUND-A", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "10.00100000", "corrected_nav_per_share": "10.00000000", "error_amount": "0.00100000", "error_amount_abs": "0.00100000", "error_direction": "overstated", "error_pct_abs": "0.010000" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": false, "percent_breach": false, "material": false }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": false, "percent_breach": false, "material": false }, "materiality_verdict": "IMMATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": false, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_IMMATERIAL", "NAV_ERROR_OVERSTATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "fbe720cfba8864259bc35041653cc9f0e8581490c1d2dfcd5572babfc97a7238" }, { "name": "material-absolute-breach", "description": "Error breaches the industry half-cent absolute threshold but not the 1% relative threshold.", "policy_parameters": { "fund_id": "FUND-A", "valuation_date": "2026-07-18", "erroneous_nav_per_share": 10.02, "corrected_nav_per_share": 10 }, "output_payload": { "fund_id": "FUND-A", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "10.02000000", "corrected_nav_per_share": "10.00000000", "error_amount": "0.02000000", "error_amount_abs": "0.02000000", "error_direction": "overstated", "error_pct_abs": "0.200000" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": true, "percent_breach": false, "material": true }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": true, "percent_breach": false, "material": true }, "materiality_verdict": "MATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": true, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_MATERIAL", "NAV_ERROR_OVERSTATED", "REPROCESSING_REVIEW_INDICATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "ec4a701d8ffab9a13ac33d4d4a7fe4c5337547940eef01ea6169647b44706d39" }, { "name": "boundary-absolute-exact-threshold", "description": "error_amount_abs lands EXACTLY on the industry half-cent (0.005) boundary. >= is a breach, so this is MATERIAL.", "policy_parameters": { "fund_id": "FUND-ROUND", "valuation_date": "2026-07-18", "erroneous_nav_per_share": "10.00500000", "corrected_nav_per_share": "10.00000000" }, "output_payload": { "fund_id": "FUND-ROUND", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "10.00500000", "corrected_nav_per_share": "10.00000000", "error_amount": "0.00500000", "error_amount_abs": "0.00500000", "error_direction": "overstated", "error_pct_abs": "0.050000" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": true, "percent_breach": false, "material": true }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": true, "percent_breach": false, "material": true }, "materiality_verdict": "MATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": true, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_MATERIAL", "NAV_ERROR_OVERSTATED", "REPROCESSING_REVIEW_INDICATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "45f75c8c4d39d7d4ed2cfe243e3a765531f8c7558f64a3fe299092a1cc983beb" }, { "name": "boundary-absolute-just-below", "description": "One smallest-representable increment (1e-8) below the half-cent boundary, understated direction. IMMATERIAL.", "policy_parameters": { "fund_id": "FUND-ROUND", "valuation_date": "2026-07-18", "erroneous_nav_per_share": "9.99500001", "corrected_nav_per_share": "10.00000000" }, "output_payload": { "fund_id": "FUND-ROUND", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "9.99500001", "corrected_nav_per_share": "10.00000000", "error_amount": "-0.00499999", "error_amount_abs": "0.00499999", "error_direction": "understated", "error_pct_abs": "0.049999" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": false, "percent_breach": false, "material": false }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": false, "percent_breach": false, "material": false }, "materiality_verdict": "IMMATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": false, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_IMMATERIAL", "NAV_ERROR_UNDERSTATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "fd66547c92739de433262683adca6039fc305812d0daf93c12e632bd45b73913" }, { "name": "boundary-absolute-just-above", "description": "One smallest-representable increment (1e-8) above the half-cent boundary, understated direction. MATERIAL.", "policy_parameters": { "fund_id": "FUND-ROUND", "valuation_date": "2026-07-18", "erroneous_nav_per_share": "9.99499999", "corrected_nav_per_share": "10.00000000" }, "output_payload": { "fund_id": "FUND-ROUND", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "9.99499999", "corrected_nav_per_share": "10.00000000", "error_amount": "-0.00500001", "error_amount_abs": "0.00500001", "error_direction": "understated", "error_pct_abs": "0.050000" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": true, "percent_breach": false, "material": true }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": true, "percent_breach": false, "material": true }, "materiality_verdict": "MATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": true, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_MATERIAL", "NAV_ERROR_UNDERSTATED", "REPROCESSING_REVIEW_INDICATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "11467164aa89122fea507f873b8c6d4f2b3e992498681b8a8623f3d8aab701a1" }, { "name": "boundary-percent-exact-threshold", "description": "error_pct_abs lands EXACTLY on the industry 1% boundary (low-priced fund so the absolute half-cent test does not also trigger). MATERIAL.", "policy_parameters": { "fund_id": "FUND-LOWPRICE", "valuation_date": "2026-07-18", "erroneous_nav_per_share": "0.20200000", "corrected_nav_per_share": "0.20000000" }, "output_payload": { "fund_id": "FUND-LOWPRICE", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "0.20200000", "corrected_nav_per_share": "0.20000000", "error_amount": "0.00200000", "error_amount_abs": "0.00200000", "error_direction": "overstated", "error_pct_abs": "1.000000" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": false, "percent_breach": true, "material": true }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": false, "percent_breach": true, "material": true }, "materiality_verdict": "MATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": true, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_MATERIAL", "NAV_ERROR_OVERSTATED", "REPROCESSING_REVIEW_INDICATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "bcabf6efeedbb46ba35e5e59fca851ba6d883d1e7897cf723f3018a51249ad81" }, { "name": "boundary-percent-just-below", "description": "One smallest-representable increment below the 1% boundary. IMMATERIAL.", "policy_parameters": { "fund_id": "FUND-LOWPRICE", "valuation_date": "2026-07-18", "erroneous_nav_per_share": "0.20199999", "corrected_nav_per_share": "0.20000000" }, "output_payload": { "fund_id": "FUND-LOWPRICE", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "0.20199999", "corrected_nav_per_share": "0.20000000", "error_amount": "0.00199999", "error_amount_abs": "0.00199999", "error_direction": "overstated", "error_pct_abs": "0.999995" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": false, "percent_breach": false, "material": false }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": false, "percent_breach": false, "material": false }, "materiality_verdict": "IMMATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": false, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_IMMATERIAL", "NAV_ERROR_OVERSTATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "2511e2a024caac3bdf3c33c4f7731cc72c7a320b6efddde00b4756b05312e7f0" }, { "name": "boundary-percent-just-above", "description": "One smallest-representable increment above the 1% boundary. MATERIAL.", "policy_parameters": { "fund_id": "FUND-LOWPRICE", "valuation_date": "2026-07-18", "erroneous_nav_per_share": "0.20200001", "corrected_nav_per_share": "0.20000000" }, "output_payload": { "fund_id": "FUND-LOWPRICE", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "0.20200001", "corrected_nav_per_share": "0.20000000", "error_amount": "0.00200001", "error_amount_abs": "0.00200001", "error_direction": "overstated", "error_pct_abs": "1.000005" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": false, "percent_breach": true, "material": true }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": false, "percent_breach": true, "material": true }, "materiality_verdict": "MATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": true, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_MATERIAL", "NAV_ERROR_OVERSTATED", "REPROCESSING_REVIEW_INDICATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "8d122c1175954b12a499c5b4de62f1546b7e17dd4724c41abfdbf82c2701632e" }, { "name": "fund-policy-tighter-diverges-from-industry", "description": "Error is immaterial under the industry default but the fund declares a tighter absolute threshold, flipping the verdict to MATERIAL. Divergence flag expected.", "policy_parameters": { "fund_id": "FUND-TIGHT", "valuation_date": "2026-07-18", "erroneous_nav_per_share": 10.002, "corrected_nav_per_share": 10, "materiality_policy": { "absolute_threshold": 0.001, "percent_threshold": 0.1, "policy_source": "fund_declared" } }, "output_payload": { "fund_id": "FUND-TIGHT", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "10.00200000", "corrected_nav_per_share": "10.00000000", "error_amount": "0.00200000", "error_amount_abs": "0.00200000", "error_direction": "overstated", "error_pct_abs": "0.020000" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": false, "percent_breach": false, "material": false }, "declared_policy": { "absolute_threshold": "0.00100000", "percent_threshold": "0.100000", "policy_source": "fund_declared", "absolute_breach": true, "percent_breach": false, "material": true }, "materiality_verdict": "MATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": true, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_MATERIAL", "NAV_ERROR_OVERSTATED", "REPROCESSING_REVIEW_INDICATED", "NAV_ERROR_POLICY_DIVERGES_FROM_INDUSTRY_DEFAULT", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "fcbe9c72a1c2f1d21e0414caf4ce35ea1c3ae551e464102f98f72ab54db249e3" }, { "name": "fund-policy-looser-diverges-from-industry", "description": "Error is material under the industry default but the fund declares a looser policy, flipping the verdict to IMMATERIAL. Divergence flag expected.", "policy_parameters": { "fund_id": "FUND-LOOSE", "valuation_date": "2026-07-18", "erroneous_nav_per_share": 10.02, "corrected_nav_per_share": 10, "materiality_policy": { "absolute_threshold": 0.05, "percent_threshold": 5, "policy_source": "fund_declared" } }, "output_payload": { "fund_id": "FUND-LOOSE", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "10.02000000", "corrected_nav_per_share": "10.00000000", "error_amount": "0.02000000", "error_amount_abs": "0.02000000", "error_direction": "overstated", "error_pct_abs": "0.200000" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": true, "percent_breach": false, "material": true }, "declared_policy": { "absolute_threshold": "0.05000000", "percent_threshold": "5.000000", "policy_source": "fund_declared", "absolute_breach": false, "percent_breach": false, "material": false }, "materiality_verdict": "IMMATERIAL", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": false, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_IMMATERIAL", "NAV_ERROR_OVERSTATED", "NAV_ERROR_POLICY_DIVERGES_FROM_INDUSTRY_DEFAULT", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "b756700ea6930c05fe272738006ca9f7e5ea38c14460d8f15a7d4c372fbc564e" }, { "name": "affected-period-reprocessing-indicated", "description": "Material error with an affected period and shares outstanding supplied: estimated_impact computed, reprocessing review indicated.", "policy_parameters": { "fund_id": "FUND-MMF", "valuation_date": "2026-07-18", "erroneous_nav_per_share": 1.01, "corrected_nav_per_share": 1, "affected_period": { "start_date": "2026-07-10", "end_date": "2026-07-15", "days": 5 }, "shares_outstanding": 5000000 }, "output_payload": { "fund_id": "FUND-MMF", "valuation_date": "2026-07-18", "structural_error": null, "error": { "erroneous_nav_per_share": "1.01000000", "corrected_nav_per_share": "1.00000000", "error_amount": "0.01000000", "error_amount_abs": "0.01000000", "error_direction": "overstated", "error_pct_abs": "1.000000" }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": true, "percent_breach": true, "material": true }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": true, "percent_breach": true, "material": true }, "materiality_verdict": "MATERIAL", "affected_period": { "start_date": "2026-07-10", "end_date": "2026-07-15", "days": 5 }, "shares_outstanding": "5000000.00000000", "estimated_impact": "50000.00000000", "reprocessing_need_indicated": true, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_MATERIAL", "NAV_ERROR_OVERSTATED", "REPROCESSING_REVIEW_INDICATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "53ca739b0442dcc345384a9d13493e8b7ed76701721e9a899219a05ef22792bd" }, { "name": "structural-error-zero-corrected-nav", "description": "corrected_nav_per_share is zero: no relative error is computable, verdict INDETERMINATE.", "policy_parameters": { "fund_id": "FUND-BAD", "valuation_date": "2026-07-18", "erroneous_nav_per_share": 1, "corrected_nav_per_share": 0 }, "output_payload": { "fund_id": "FUND-BAD", "valuation_date": "2026-07-18", "structural_error": "corrected_nav_per_share must be non-zero to compute a relative error.", "error": { "erroneous_nav_per_share": "1.00000000", "corrected_nav_per_share": "0.00000000", "error_amount": "1.00000000", "error_amount_abs": "1.00000000", "error_direction": "overstated", "error_pct_abs": null }, "industry_convention": { "absolute_threshold": "0.005", "percent_threshold": "1", "absolute_breach": true, "percent_breach": false, "material": true }, "declared_policy": { "absolute_threshold": "0.00500000", "percent_threshold": "1.000000", "policy_source": "industry_default", "absolute_breach": true, "percent_breach": false, "material": false }, "materiality_verdict": "INDETERMINATE", "affected_period": { "start_date": null, "end_date": null, "days": null }, "shares_outstanding": null, "estimated_impact": null, "reprocessing_need_indicated": false, "not_proven": [ { "item": "Accounting opinion", "detail": "This kernel computes what the DECLARED materiality policy implies over the supplied error figures. It is never an accounting opinion, never a legal or regulatory determination of materiality." }, { "item": "Reprocessing decision authority", "detail": "A material-verdict flag indicates a reprocessing REVIEW is warranted per the declared policy. The decision to reprocess, and how, rests with the fund’s accounting/compliance function, never this kernel." }, { "item": "NAV accuracy of underlying inputs", "detail": "The erroneous and corrected NAV-per-share values are caller-supplied and asserted, not independently recomputed or verified here (see recompute_fund_nav, art-373, for that arithmetic)." }, { "item": "Regulatory materiality standard", "detail": "The half-cent and 1% figures are common industry conventions, not a codified SEC/40-Act materiality rule. This kernel makes no compliance claim under either framework." } ], "fence": "The erroneous and corrected NAV-per-share values are SUPPLIED, asserted, and digested into this receipt. This kernel attests the ARITHMETIC of the error comparison against a DECLARED materiality policy — never an accounting opinion, never a determination that a fund must reprocess, never advice. It computes what the declared policy implies.", "regulatory_framework": "Industry half-cent / 1% NAV-error materiality conventions referenced as informative context only; this kernel makes no compliance claim under any specific regulatory framework." }, "compliance_flags": [ "NAV_ERROR_STRUCTURAL_ERROR", "NAV_ERROR_OVERSTATED", "NAV_ERROR_INPUTS_SUPPLIED_NOT_VERIFIED" ], "golden_hash": "e42b5ebf1a82ee9944b731b9a7df840c202f3af45ac2dbd536ebad6ccddde4e9" } ] }