Fund Accounting

About Fund Accounting

A fund accounting system keeps track of resources whose usage has been constrained by a contributor, grant authority, governing body, other people or organizations, or by the law. It is employed by governments and nonprofit organizations and places a stronger emphasis on responsibility than profitability.

Fund accounting has gained immense popularity across the globe resulting in huge demand for certified professionals.

Why is Fund Accounting important?

Nonprofits may use fund accounting to see exactly how much of their budget goes to various fundraising, program, and operational costs. By doing this, the organization can create more realistic budgets and make sure they have the money they need to keep running in the future.

Fund accounting certified professionals, executives and managers are in high demand in companies across the globe.

Who should take the Fund Accounting Exam?

• Finance managers, senior executives, executives
  
• Accountants seeking to learn new areas of accounting
• Fund managers
• Emerging fund managers
• Individuals seeking to launch real estate funds
• Venture capital principals
• Fund principals

Knowledge and Skills required for the Fund Accounting

Specific skills are needed to excel in career of fund accounting which includes analytical bent of mind and quick learning skills.

Fund Accounting Practice Exam Objectives

Fund Accounting exam focuses on assessing your skills and knowledge in financial accounting.

Fund Accounting Practice Exam Pre-requisite

There are no prerequisites for the Fund Accounting exam. Candidates who are well versed  in financial accounting can easily clear the exam.

Fund Accounting Certification Course Outline

1. Understand the difference between private equity and hedge funds
2. Learn common fund structures
3. Understand the economics of private equity
4. Comprehend key concepts of private equity accounting
5. Calculate management and performance fee
6. Calculate net asset value (NAV)
7. Understand capital activities in fund accounting
8. Fund's key concepts (i.e. private equity, hedge fund)
9. Difference between private equity and a hedge fund
10. How private equity funds are set up (stand-alone fund, master-feeder, parallel, etc.)
11. Legal entities and preferable jurisdictions
12. Team members and service providers (management, advisory board, attorneys, accountants, fund administrator, custodian, etc.)
13. Key accounting concepts (statement of assets and liabilities, statement of activities, schedule of investments, members/partners equity)
14. Capital activities (capital call ad redemptions)
15. Operating expense schedule
16. Management and performance fees calculation
17. Net asset value calculation

Exam Format and Information

Certification name – Certificate in Fund Accounting
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199