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Details

  • Service: Tax
  • Type: Regulatory update, Survey report
  • Date: 1/1/2014

Austria - Accounting 

International funds and fund management survey
1.1 Requirement to produce financial statements
1.2 Requirement to audit financial statements
1.3 Publication of financial statements
1.4 Accounting standards
1.5 Contents of financial statements
1.6 Accounting treatments and disclosures
1.7 Appendix


1.1 Requirement to produce financial statements

Requirements to maintain the books and records in the local jurisdiction


According to Austrian Investment Fund Act 2011, the investment management company is in charge of maintaining the books and records of a fund if these tasks are not delegated to a domestic custodian.


Production of financial statements by collective investment funds


All funds in Austria are required to publish annual and semi-annual financial statements. The annual financial statements shall include:


  • statement of assets and liabilities
  • profit and loss account
  • the fund rules
  • number of units in circulation
  • net asset value per unit
  • breakdown of securities holdings
  • information on movements in the assets of the investment fund during the reporting period
  • transaction costs
  • review of the past three financial years, including the following information as at the end of each financial year:
    1. total fund assets
    2. net asset value per unit.
  • method of calculating global exposure
  • in the case of using value-at-risk:
    1. reference assets
    2. the lowest, highest and average amounts of the value-at-risk
    3. the model used and the inputs for calculating the value-at-risk
    4. amount of leverage during the preceding period, calculated from the total nominal amounts of derivatives.
  • indication of amount of existing liabilities arising from transactions within the meaning of Section 73, 83 and 84 (Derivative Instruments, Repurchase agreements and securities lending) of the Austrian Investment Fund Act 2011
  • distribution per unit
  • report on activities in the past financial year
  • any essential information enabling investors to make an informed assessment of the development of activities and results of the investment fund.

There is no binding chart of accounts; the structure of the periodical reports is flexible.


Requirement for comparatives


Comparative figures are only required for the total fund assets, net asset value per unit (see above).


Choice of period/year-end for collective investment funds


The fund can freely choose the reporting year end.


Restrictions on the currency under which financial statements must be prepared


There are no restrictions on the reporting currency.


Use of short form accounts


Short form financial statements may be issued provided that the full version is also available to investors.


Umbrella structures


An annual and semi-annual financial statement for each investment compartment is necessary.


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1.2 Requirement to audit financial statements

The annual report shall be audited by the bank auditor of the investment fund management company. The interim report is not subject to an audit.


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1.3 Publication of financial statements

Financial statements must be sent to the regulators and to the supervisory board of the management company as follows:


  • audited annual report: within four months after year end
  • semiannual report: within two months after period end.

Financial statements of special funds are to be sent to the investors.


Furthermore, the annual and the semi-annual report (except special funds) have to be made available to the public at the management company and at the depository bank.


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1.4 Accounting standards

Financial statements are usually prepared under Austrian Generally Accepted Accounting Principles (GAAP). These principles are simple and flexible enough to accommodate for investment funds particularities.


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1.5 Contents of financial statements

Requirements for inclusion in annual financial statements:


Required by law Required by Austrian GAAP Complied with for best practice
A statement which includes all income less expenses plus realized and unrealized gains and losses Yes Yes Yes
A statement which only includes income less expenses No No No
A statement which only includes income less expenses plus realized gains and losses No No No
Statements of net assets and liabilities Yes Yes Yes
Statement of changes in net assets (securities holdings) Yes Yes Yes
Cash flow statement (information on movements in the assets) Yes Yes Yes
Statement of accounting policies No No No
3 year net asset value table Yes Yes Yes
5 year net asset value table No No No

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1.6 Accounting treatments and disclosures

The following items must be included in the annual financial statements:


Required by law Required by Austrian GAAP Complied with for best practice
Futures are shown on balance sheet using the grossed up notional amount No No No
Futures are shown on the balance sheet based on the margin outstanding Yes Yes Yes
Futures are shown on the balance sheet based on the margin outstanding and the margin paid to date No No No
Organization costs are written off immediately Yes Yes Yes
Organization costs are amortized over one year No No No
Organization costs are amortized over more than one year No No No
Issue costs are charged to the statement of operations No No No
Issue costs are netted off against creation proceeds No No No
Contingent deferred sales charges are recorded as income N/A N/A N/A
Contingent deferred sales charges are netted off against redemption proceeds N/A N/A N/A
Holdings in other collective investment funds are consolidated if the fund holds > 50% of the underlying collective investment fund's shares No No No
Methods used in financial statements presentation to measure listed investments are:
Cost No No No
Market value Only market value is accepted, usually close price
The financial statements distinguish between income and capital Yes Yes Yes

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1.7 Appendix

Reference material


The following details the relevant laws and regulations for collective investment funds and fund management companies and provides web addresses (in certain instances) for where this material can be located.


Regulator



Taxation authority



Others





© 2014 KPMG Alpen-Treuhand GmbH Wirtschaftsprüfungs-und Steuerberatungsgesellschaft (Wien), an Austrian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

 

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Maria Schmöllerl

KPMG in Austria

0043 1 31332

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