However, these decisions do signal that the provisions will not be interpreted liberally, and, in the aftermath of ADP, it appears that the types of entities that will qualify as investment companies
for Illinois tax purposes have been severely limited.
To comply with SEC rules and regulations, registered investment companies must make certain disclosures in addition to those required by generally accepted accounting principles.
The illustrative financial statements of management investment companies in the Guide contain a detailed schedule of investments.
This SOP applies to investment partnerships that are exempt from SEC registration under the Investment Company Act of 1940 and defined as investment companies in paragraph 1.
The Guide requires investment companies to list all of their individual securities in the statement of net assets or in an accompanying schedule of investments.
Investment companies present their results of operations in a statement of operations as specified in the Guide.
Investment companies normally enter into an investment advisory agreement under which they receive investment management.
1) Type (such as common stocks, preferred stocks, convertible securities, fixed-income securities, government securities, options purchased, options written, warrants, futures, loan participations, short sales, other investment companies, and so forth)
93-1, Financial Accounting and Reporting for High-Yield Debt Securities by Investment Companies, provides guidance on financial reporting by investment companies for high-yield debt securities that are held as investments.
An SOP entitled Foreign Currency Accounting and Financial Statement Presentation for Investment Companies, which will be published later this year, requires the reporting of all foreign currency gains and losses other than those related to investments.