US GAAP for investment funds

In spite of a general trend towards harmonisation of accounting standards across the globe, US GAAP for investment funds still differs in important aspects from IFRS and, more specifically, from Lux GAAP. This course covers the key differences and helps participants to interpret or establish accounting statements, through an overview of the various US GAAP pronouncements that are applicable to investment funds.

By the end of this training, the participants will be able to:

• identify the US GAAP principles applicable to investment funds;
• differentiate the principles of US GAAP and Lux GAAP for investment funds;
• apply the reporting requirements for an investment fund as per US GAAP, including the key elements of a set of financial statements.

Section I - Background on US regulations and accounting principles applicable to investment funds

Section II - Accounting principles and key differences:

• Investment valuation
• Financial accounting standard related to fair value measurements
• Recording securities transactions
• Securities lending
• Investment income
• Interest method
• Expenses
• Capital transactions
• Consolidation

Section III - Overview of financial statement components:

• Statement of assets and liabilities
• Condensed schedule of investments
• Statement of operations
• Statement of changes in net assets
• Individual partner’s capital statements
• Statement of cash flows
• Financial highlights (per share performance, ratios, total return, internal rate of return)
• Footnote disclosures

Section IV - Example financial statements

Section V- Master/feeder and fund of funds structures:

• Advantages of master/feeder structure
• Disadvantages of master/feeder structure
• Fund of funds
• Master/feeder – Key disclosures
• Fund of funds – Key disclosures
• Financial highlights

An attendance certificate will be sent to participants.

This training is coordinated by Michael Delano, Partner, PwC Luxembourg.

Michael is an assurance partner specialising in the asset management industry and is leading the Asset and Wealth Management practice at PwC Luxembourg. He began his career at PricewaterhouseCoopers in Baltimore, Maryland where he worked for 8 years before transferring to the New York office in 2004. In 2007, Michael transferred to Luxembourg’s office.

His experience has focused on leading audit engagements across a number of worldwide companies, including a wide spectrum of investment funds - equities, fixed income, emerging markets, hedge funds, private equity funds, as well as corporate audits including banks, broker/dealers and investment advisors.

Since relocating in Luxembourg, Michael has spent a significant amount of time in the fund industry primarily covering US and UK promoters.