US GAAP for investment funds

Introduction

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.

Objectives

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 fund 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.