In addition to the note disclosures that are generally made in RIC financial statements, several unique disclosures are generally made in the notes to non-registered investment companies’ and investment partnerships’ financial statements, such as the method of allocation of income and expenses for book purposes, disclosure of liquidity provisions (i.e., frequency of subscriptions and redemptions), and the disclosure of partnership contributions and withdrawals subsequent to year-end. If the investment partnership uses a clearing broker, consideration should be given to disclosing this relationship, particularly with respect to concentrations of credit risk.

For "funds-of-funds," consideration should be given to disclosing the amounts and accounting of the investment partnership’s share of management and performance fees charged by the second tier partnerships, particularly if the underlying funds are affiliated with the fund of funds. The original basis for conclusions to the Audit Guide indicated that general disclosure of either dollar amounts of allocated fees, or specific fee rates, was rejected as a GAAP requirement, and therefore we cannot insist on it as a blanket practice; however, it was also noted that partnerships are not exempt from disclosing related party management and performance fees that would otherwise require disclosure under ASC 850-10.