Training Objectives

By the end of the programme, participants will be able to: 

• Outline and analyse the reporting requirements applicable to the operations of an investment fund
• Comprehend the double entry bookkeeping process need to be followed for recording transactions carried out by an Investment Fund
• Describe and analyse the Statement of Total Earnings, Statement of Changes in Unitholders’ Net Assets, Balance Sheet, and Portfolio Statement
• Determine and describe the statutory reports required for an Investment Fund
• Describe and analyse the investment instrument and their accounting treatment
• Account for fund expenses
• Comprehend the methods used to price capital instruments
• Explain the reporting requirements applicable to the operations of an investment fund
• Explain the importance of adhering to the accounting principles and standards in order to maintain the consistency and integrity of financial information
• Explain the main principles and concepts of financial reporting
• Explain the main the Statement of Total Earnings, Statement of Changes in Unitholders’ Net Assets, Balance Sheet, and Portfolio Statement
• Develop the statutory reports required for an Investment Fund
• Choose the appropriate accounting policies to report the fund’s transactions
• Choose the appropriate methods to price financial instruments acquired or to be acquired by the fund
• Explain the main capital instruments
• Explain and interpret the corporate actions and their accounting impact
• Manage stakeholders’ expectations
• Assess the readiness of the investment fund to apply the reporting requirements
• Recommend solutions based on reports and their analysis
• Justify the importance of applying the reporting requirements

Training Outline

Accounting concepts

• Introduction to International Accounting Standard

Key financial statements – overview and format (for a fund)

• Statement of total return (P & L account)
• Statement of changes in unitholders’ net assets
• Balance sheet
• Portfolio statement
• Summary of material portfolio changes

Statutory reporting for a fund – using real set of accounts

• Reports of fund manager, trustee, and auditors
• Audited annual financial statements
• Notes to the accounts
• Statement of NAV per unit and comparative table
• Distribution table

Double entry bookkeeping

• Transactions for an investment fund:
• Accounting for equities
• Accounting for fixed income securities
• Accounting for derivatives
• Accounting for investment income
• Accounting for fund expenses

Capital instruments

• Shares – ordinary and preference
• Fixed income – FRNs and types of bonds
• Hybrids – warrants and ADRs
• Derivatives

Corporate actions and their accounting treatment

Accounting standards on financial instruments (overview)

• IFRS 9
• IAS 39
• IFRS 7

Pricing capital instruments

• Discounted cash flows
• NAV
• NRV
• Replacement cost
• EPS
• P/E ratio
• Dividend yield

Who Should Attend

This course will benefit those from investment and commercial banking areas, fund management, as well as those who support these constituencies.  Specifically:

• Financial analyst
• Financial accountant
• Budget analyst
• Personal financial advisor
• Certified public accountant
• Securities, commodities, or financial services sales agent
• Financial manager
• Alternative investment funds accountant
• Investment fund accountant
• Loan officer

Training Style

• Illustration of key terms and concepts
• Preparation and discussion of practical examples, including mini cases
• The course will have both a theoretical and practical framework with real examples drawn from actual companies, local and international
• Activities and Break-out groups

CPD Recognition

This programme may be approved for up to 14 CPD units in Accounting and Auditing. Eligibility criteria and CPD Units are verified directly by your association, regulator or other bodies which you hold membership.

In-house Training

For groups within the same organisation, this course may be customized to meet any specific needs and delivered in-house.