- It depends first on the LPA amendment mechanics, not just the reporting standard.
- If annual financials are **audited**, changing valuation policy mid-fund is much harder in practice:
- auditors will expect a strong, documented justification
- consistency period-to-period is critical
- unexplained methodology shifts can trigger audit scrutiny and LP distrust
- If financials are only **GP-certified**, the GP may have a bit more operational flexibility, but still should not change policy casually:
- valuations should be based on a written policy applied consistently
- changing it midstream without clear cause can look self-serving and misleading to LPs

Best practice: bake amendment rights and process into the LPA, then document any policy change thoroughly with admin/auditor input.

References:
- https://decilegroup.com/articles/investment-valuation-in-emerging-vc
- https://decilegroup.com/articles/vc-fund-accounting