- Joined
- Aug 5, 2015
- Messages
- 1
- Reaction score
- 0
- Country
Fund accounting question:
The fund has reached the point where the general partner will begin receiving its preferred return under the LPA. We issue financial statements under investment company guide. For financial reporting, the general partner will now receive a greater share of distributions than their pro-rata share. How do we disclose and report on this. We've got a second fund about to wrap up the investment period, when, ideally, should we begin adjusting the allocation of income to account for the preferred return?
Secondary question; assuming last year's audit report (and the year before that) are probably incorrectly allocating net assets between partners, how best to adjust the disclosures in this year's audit report?
The fund has reached the point where the general partner will begin receiving its preferred return under the LPA. We issue financial statements under investment company guide. For financial reporting, the general partner will now receive a greater share of distributions than their pro-rata share. How do we disclose and report on this. We've got a second fund about to wrap up the investment period, when, ideally, should we begin adjusting the allocation of income to account for the preferred return?
Secondary question; assuming last year's audit report (and the year before that) are probably incorrectly allocating net assets between partners, how best to adjust the disclosures in this year's audit report?