June 12, 1995
TO: ACCOUNTING/TREASURERS COMMITTEE No. 21-95
INDEPENDENT ACCOUNTANTS ADV. GROUP No. 5-95
RE: MEETING AGENDA - JUNE 22, 1995; FOREIGN CURRENCY EXCHANGE
CONTRACTS WHITE PAPER
______________________________________________________________________________
The agenda for the meeting of the Accounting/Treasurers Committee and the Independent
Accountants Advisory Group on June 22, 1995 is attached. The meeting will be held at the offices of
the Investment Company Institute, 1401 H Street, N.W. in Washington. The meeting is scheduled to
begin at 10:00 a.m. in the Silver conference room which is located on the twelfth floor.
Enclosed is a draft copy of the Foreign Currency Exchange Contracts white paper prepared by
the Accounting Policy Subcommittee. The paper a) describes the accounting and tax issues associated
with foreign currency exchange contracts (FX Contracts), b) summarizes the treatment of FX Contracts
for purposes of financial reporting, and c) provides journal entries for sample FX Contract transactions.
Please review the draft paper and be prepared to provide the APS with any comments you may
have at the upcoming meeting. If no substantive comments are received, you may be asked to vote to
approve this document for distribution to the industry.
Gregory M. Smith
Director - Operations/
Compliance & Fund Accounting
Attachment
Enclosure