Whether you are a financial statement preparer or auditor, it is critical to understand the complexities of the specialized accounting and regulatory requirements for investment companies.

The industry standard resource, this 2017 guide supports practitioners in a constantly changing industry landscape. Updated by the AICPA staff in collaboration with the Investment Companies Expert Panel, this guide provides authoritative how-to accounting and auditing advice, including implementation guidance and illustrative financial statements and disclosures. Packed with continuous regulatory developments, this edition has been updated to reflect certain changes necessary due to the issuance of authoritative guidance since the guide was originally issued, and other revisions as deemed appropriate.

Authoritative guidance issued through July 1, 2017 has been considered in the development of this edition of the guide. This guide does not include all audit, accounting, reporting, and other requirements applicable to an entity or a particular engagement. This guide is intended to be used in conjunction with all applicable sources of authoritative guidance.

Key Features & Benefits

• The latest auditing and regulatory guidance specific to investment companies.
• Background on the investment company industry as well as interpretive guidance for both new and existing rules.
• "Best practice" discussion provided on several new and recurring complex industry-specific issues, including: investment valuation, financial instruments, capital accounts, BDCs, master-feeder funds, multi-class funds, UITs, separate accounts of life insurance entities, and many more.
• Illustrative reports on examinations of securities and controls at a custodian pursuant to Rule 206(4)-2 of the Investment Advisers Act of 1940.

Updates

The updates for this 2017 edition include extensive changes to the illustrated financial statements for registered investment companies that result from SEC's issuance of the release Investment Company Reporting Modernization and related amendments to Regulation S-X. Other updates to the 2017 edition include changes to illustrated attestation reports that result from AICPA's issuance of Statement on Standards for Attestation Engagements (SSAE) No. 18, Attestation Standards: Clarification and Recodification. Further updates include:

• References to appropriate AICPA Technical Questions and Answers that address when to apply the liquidation basis of accounting
• Appendixes discussing the new standards for financial instruments, leases, and revenue recognition
• Appendixes discussing common or collective trusts and business development companies

Who Will Benefit?

This comprehensive guide has been designed to be beneficial for a wide range of professionals, including those within the investment company industry, as well as those practicing in small, regional, and large accounting and auditing firms. The guide provides auditing considerations applicable for practitioners conducting audits of both registered and nonregistered investment companies (that is, AICPA and PCAOB audits).