Fund accounting

Diagram demonstrating the difference between general and fund accounting

Fund accounting is an accounting system for recording resources whose use has been limited by the donor, grant authority, governing agency, or other individuals or organisations or by law.[1] It emphasizes accountability rather than profitability, and is used by Nonprofit organizations and by governments. In this method, a fund consists of a self-balancing set of accounts and each are reported as either unrestricted, temporarily restricted or permanently restricted based on the provider-imposed restrictions.

The label fund accounting has also been applied to investment accounting, portfolio accounting or securities accounting – all synonyms describing the process of accounting for a portfolio of investments such as securities, commodities and/or real estate held in an investment fund such as a mutual fund or hedge fund.[2][3] Investment accounting, however, is a different system, unrelated to government and nonprofit fund accounting.

  1. ^ Leon E. Hay (1980). Accounting for Governmental and Nonprofit Entities, Sixth edition, page 5. Richard D. Irwin, Inc., Homewood, IL. ISBN 0-256-02329-8
  2. ^ IFRS for Investment Funds Deloitte Development LLC (2008). See "Challenges and Opportunities for Investment Funds" on p. 3. Retrieved 2010-05-17
  3. ^ Hedge Funds Accounting. Archived 2018-06-13 at the Wayback Machine Green Trader Funds. Retrieved 2010-05-17

From Wikipedia, the free encyclopedia · View on Wikipedia

Developed by Nelliwinne