Comparison for investment funds: 2013 IFRS/U.S. GAAP/Luxembourg GAAP


Comparison for investment funds: 2013 IFRS/U.S. GAAP/Luxembourg GAAP

Elements for success

There is a focus on moving toward a set of globally accepted standards for financial reporting that address the needs of fund investors and the fund accounting industry. This briefing highlights differences between IFRS, U.S. GAAP, and Luxembourg GAAP.

In 2013, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) continued to work toward convergence between the International Financial Reporting Standards (IFRS) and accounting principles generally accepted in the United States of America (U.S. GAAP).

Through methodically addressing those issues that represent the most significant differences, these Boards continue to issue new standards that are shaping the accounting rules for all types of entities. Hearing the pleas from investment managers and bodies like the Investment Company Institute and the European Fund and Asset Management Association, the convergence continued to more tangibly deal with standards that address the needs of fund shareholders and acknowledge the unique nature of fund financial reporting.

This briefing highlights selected differences between current significant accounting standards in place in jurisdictions where investment activity is most significant as well as changes which are dependent on EU endorsement. It includes IFRS, U.S. GAAP, and LUX GAAP.

The accounting standards for investment funds under LUX GAAP are derived from Luxembourg laws and regulations and are primarily shaped by the European Union (EU) Undertakings for Collective Investment in Transferable Securities (UCITS) and the Alternative Investment Fund Manager Directives (AIFMD) and diverge from IFRS and U.S. GAAP in several respects.

Although there are other significant global investment fund jurisdictions, the accounting standards in those other areas tend to allow or closely follow the tenets of IFRS. 

Comparison for investment funds: 2013 IFRS/U.S. GAAP/Luxembourg GAAP - PDF file - size: 1mb
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