Exposure Draft Addresses Nonpublic Investment Partnerships


The AICPA AcSEC issued a proposed statement of position that would amend SOP 95-2, Financial Reporting by Nonpublic Investment Partnerships , to include within its scope a type of investment partnership—known as a commodity pool—formed to trade interests in commodities and regulated under the Commodity Exchange Act of 1974.

Daniel J. Noll, a technical manager in the AICPA accounting standards division, explained why the amendment is necessary. "At the time we issued SOP 95-2," he said, "we thought we later would release an authoritative accounting guide for commodity pools; instead, we issued a nonauthoritative practice aid."

The professional literature, therefore, is officially silent with regard to commodity pools that are subject to the act's provisions. Thus two pools with similar investment portfolios and operations—one regulated under the act and one not—could disclose differing information in their financial statements.

"The proposed amendment fills that gap in the literature by bringing commodity pools governed by the act within the scope of SOP 95-2," Noll told the JofA .

If approved, the exposure draft's provisions would be effective for financial statements issued for periods ending after June 15, 2001, although the AICPA encourages earlier application of it.

The proposed SOP is available on the AICPA Web site at www.aicpa.org/ members/div/acctstd/edo/index.htm.

Comments on it are due by November 15.

SPONSORED REPORT

Revenue recognition: A complex effort

Implementing the new standard requires careful judgment. Learn how to make significant accounting judgments and document them and collaborate with peers for consistent application.

VIDEO

How to Excel pivot a general ledger

The general ledger is a vast historical data archive of your company's financial activities, including revenue, expenses, adjustments, and account balances. J. Carlton Collins, CPA, shows how to prepare data for, and mine data with, PivotTables.

QUIZ

News quiz: Taking an economic snapshot and looking to the future

Recent news included IRS actions that affect individuals and partnerships and a possibly influential move by a Big Four accounting firm.Take this short quiz to see how much you know about the news.