Investment Companies — Checklist Supplement and Illustrative Financial Statements

This financial accounting and reporting practice aid is invaluable to anyone who prepares financial statements and reports for investment companies. The checklists have been updated to reflect AICPA and FASB pronouncements and interpretations issued as of September 30, 2008. These checklists can be used by preparers of investment company financial statements prepared in conformity with generally accepted accounting principles and by practitioners who audit, review, or compile those financial statements as they evaluate the adequacy of disclosures made in the basic financial statements, notes to the financial statements, and required supplementary information. Illustrative financial statements and auditor's reports are included in this practice aid.

This nonauthoritative practice aid has been prepared by the AICPA staff and has not been reviewed, approved, disapproved, or otherwise acted on by any senior technical committee of the AICPA and do not represent official positions or pronouncements of the AICPA.

This checklist supplement and illustrative financial statements should be used in conjunction with the Checklists and Illustrative Financial Statements for Corporations (008939).

.01 AICPA disclosure checklists have been designed as practice aids to assist accountants in the preparation of financial statements and to assist auditors in their evaluation of the adequacy of disclosures in the financial statements they audit. Authoritative literature does not require the use of checklists, nor does it prescribe their format or content.

.02 This checklist consists of a number of questions or statements that are accompanied by references to the established sources of generally accpeted accounting principles (GAAP) in which the disclosure requirements are found. These sources include Statements of Financial Accounting Standards (SFAS), Financial Accounting Standards Board (FASB) Interpretations (FIN), AICPA Audit and Accounting Guides, AICPA Statements of Position (SOP), FASB Staff Positions (FSP), and Emerging Issues Task Force (EITF) consensuses. Checklists are designed to serve as convenient memory aids but should not be used as a substitute for direct reference to authoritative literature. References are made to the AICPA’s Professional Standards publication. When referencing professional standards, this checklist cites section numbers and not the original statement number, as appropriate.

.03 To use this checklist, simply check “yes,” “no,” or “not applicable” for each question. If additional information needs to be documented, include separate cross-referenced memoranda.

.04 As you use this checklist, please remember that:

• The exercise of sound professional judgment is of paramount importance in applying the checklist provisions.
• The checklist may require modification based on the engagement circumstances.
• The checklist may not be all-inclusive.
• Users need to modify the checklist for any pronouncements issued subsequent to those mentioned in the checklist.

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