Fundamentals of Hedge Fund NAV Accounting
Author: Rita BasuMallick
| CPE Credit: |
2 hours for CPAs |
This course offers an overview of what hedge funds are, how they operate and what is hedge fund accounting all about. The course offers fundamental knowledge of Net Asset Valuation (NAV) concept, essentials of NAV calculation, NAV accounting and reporting process. It describes some useful terms a hedge fund accountant can expect to encounter, basics of portfolio accounting, pricing, and reconciliation process. The course briefly discusses a fund’s income and expenses, and their impact on NAV. Finally, the course offers a bird’s eye view of hedge fund structures, fees, and basic investors’ capital activities.
Publication Date: June 2025
Topics Covered
- Overview of Hedge Funds
- Concept of Net Asset Value Accounting
- Introduction to Investment Portfolio Accounting
- Portfolio Reconciliation & Valuation
- Fund Fees and Expenses
- Investors' Capital Activities
- NAV Calculation
Learning Objectives
- State the definition and broad structure of a hedge fund as an investment vehicle
- Recognize fundamentals of accounting issues for hedge funds
- State concept of Net Asset Valuation and steps involved in NAV calculation
- Identify key elements of investments, portfolio accounting, valuation and reconciliation
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Accounting (1 hour), Auditing (1 hour)
Program Prerequisites
Basic knowledge of Accounting (Journal entries, Trial Balance)and how security investment works.
Advance Preparation
None
