Exposure draft of SOP issued on audits of investment companies. (accounting & auditing news).The AICPA's Accounting Standards Executive Committee has issued an exposure draft of a statement of position, Clarification Clarification The removal of small amounts of fine, particulate solids from liquids. The purpose is almost invariably to improve the quality of the liquid, and the removed solids often are discarded. of the Scope of the Audit and Accounting Guide Audits of Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies. The proposed SOP provides specific conditions for determining whether an entity is within the scope of the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). Audit and Accounting Guide Audits of Investment Companies. For those entities that are investment companies under the SOP, the SOP also addresses the retention of that specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. industry accounting by a parent company in consolidation or by an investor that has the ability to exercise significant influence over the investment company and applies the equity method of accounting to its investment in the entity (referred to as an equity method investor). The provisions of the SOP would be effective for fiscal years beginning after Dec. 15, 2003 (AcSEC's intention is for the SOP to be effective approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. six months after its issuance date), with earlier application encouraged. Comments on the exposure draft are due Mar. 31, 2003, and should be submitted as directed in the ED, which has been posted to: website: www.aicpa.org/members/div/acctstd/edo/021217_sop_invest.htm |
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