Accounting & Auditing Standards


Like the regulatory landscape, accounting and auditing standards and accounting rule interpretation and audit practices are constantly evolving.

The big picture: Accounting standards promulgated by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board establish the basis for the financial statement presentation under Generally Accepted Accounting Principles or “GAAP” (or IFRS, where applicable). The funds’ limited partner agreements (LPAs) generally establish the content, and sometimes the form of funds’ quarterly and fund financial reports.

A deeper look: Audit standards established by the Public Company Accounting Oversight Board (PCAOB) and the American Institute of Certified Public Accountants (AICPA) set out the rules and practices that the funds’ independent auditors must follow in certifying each fund’s compliance with GAAP.

Private organizations such as the Institutional Limited Partner Association (ILPA), the International Private Equity and Venture Capital Valuation Group (IPEV) and the Private Equity Investors Guidelines Group have issued papers and commentary to help harmonize reporting by private funds, including venture capital funds. NVCA has sought to provide proactive and constructive support to these efforts where appropriate.


What we’re doing: NVCA continuously monitors developments that impact the industry. NVCA and its members believe that transparency and effective financial reporting are key to the relationship between venture capital funds and their limited partner investors.

NVCA engages with its member regularly through its CFO Task Force, which comprises CFOs, COOs, and senior financial and operations professionals of our member firms.

  • The CFO Task Force was established to draw on the collective insights and extensive experiences of those responsible for financial reporting in NVCA member firms.
  • This group plays a critical role within their firms by making sure that limited partners have relevant and useful information concerning the performance of the funds they manage and the portfolio companies that make them up.

NVCA works with the various accounting bodies and standard setters to avoid new requirements that undermine our members’ ability to deliver the most decision-useful information to LPs in a cost-effective manner. With the advice and assistance of Task Force members, NVCA monitors developments in financial reporting and responds when and where it is appropriate to educate decision-makers on the unique circumstances of venture funds in financial reporting.

Meet The Policy Expert

Christina Martin
Chief Operating Officer