Global transition to IFRS continues to gain pace and is increasingly impacting affiliates of US investment companies. Transition is already occurring in some foreign countries and, in the US, the SEC is taking steps toward it. No matter the SEC's direction, it is clear that the ongoing convergence and development of standards will result in significant changes in the US -- impacting not only accounting and reporting, but also operations, including fund design, marketing and investor relations. Investment companies need to be thinking about IFRS now, closely following international acceptance of IFRS, and identifying what can be done now to prepare for convergence.
Now in it's third edition, this publication provides a general overview of the key similarities and differences between the accounting principles generally accepted in the United States (US GAAP) and International Financial Reporting Standards (IFRS) as they are applicable specifically to investment companies. It also offers an appreciation for the level of change on the horizon, and primarily compares the accounting and reporting requirements of nonregistered investment companies and not those registered with the US Securities and Exchange Commission (SEC).