PwC submitted comments on the GASB's exposure draft, Accounting and Financial Reporting for Certain External Investment Pools.
We are supportive of the board’s decision to remove the direct linkage between the existing standards and the Investment Company Act of 1940 Rule 2a-7 and instead develop specific criteria for determining whether it is appropriate for an investment pool to measure its investments at amortized cost.
We believe the proposed criteria, which are primarily focused on ensuring that an external investment pool’s assets consist of high credit quality, short duration debt instruments, are consistent with the limited exception for this class of entities from reporting investments at fair value.
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