July 1, 1992
TO: ACCOUNTING/TREASURERS COMMITTEE NO. 31-92
RE: SURVEY OF BOOK/TAX DIFFERENCES EXPERIENCE
__________________________________________________________
Enclosed is a survey which was developed to assess the
nature and extent of book/tax differences experienced by mutual
funds. As was described at the most recent meeting of the ICI
Accounting/Treausrers Committee, the Accounting Policy
Subcommittee undertook to study the possibility of converting
curent GAAP reporting to tax-basis for those elements which most
affect shareholders. While the intent of the study is to preserve
those value-based accounting principles that serve the industry
well, this study will explore the unsatisfied needs of
shareholders with regard to ordinary income and capital gain
reporting which are manifesting themselves in a variety of ways.
Where shareholder needs are not being met by current GAAP and for
those needs that might otherwise be better served by tax basis
reporting, we will propose improvements. Thus, the enclosed
survey is a logical step in assessing needs with a view towards
making improvements which will serve our shareholders.
If you have any questions in this regard please call Donald
Boteler or Kathleen Joaquin at the Institute. Please complete
the survey and return it to Kathleen C. Joaquin at the Institute
by July 15, 1992.
The Study Team
Vincent Nave, The Bostom Company
David Taylor, Federated
Enclosure